What Types of Insurance Are Required for Fort Lauderdale Businesses?

Fort Lauderdale thrives on small businesses, and they make the city what it is. Unfortunately, there are plenty of steps one must take in order to join said community while maintaining all standards. Of all the questions that go into having a business, there is one that can be easily forgotten: What types of insurance are required for Fort Lauderdale businesses?

The legal team at Wilson, Washburn & Forster Insurance, Inc. has years of experience helping businesses in Fort Lauderdale, Palm Beach, and the greater South Florida area. We can confidently assist in determining which insurance requirements pertain to your business and ensure you are fully covered.

Insurance Requirements to Operate a Business in Fort Lauderdale

Florida has 3.1 million small businesses and makes up 99.8 % of all Florida businesses. Fort Lauderdale business insurance laws depend greatly on the specifics of your business. Whether you are opening a construction, food service, or retail business will all alter the details of what is necessary. The following are three coverage plans that are legally required for all Fort Lauderdale businesses:

• Workers’ Compensation. This is to ensure that workers involved in any accidents get their fair treatment. The requirements for when an employer must have workers’ compensation depend on the industry. In any construction business, there must be workers’ compensation benefits if there are one or more employees. For non-construction companies, the threshold is four or more part-time or full-time employees.
• Unemployment Coverage. This coverage plan is required if a business has employed one or more workers for at least twenty weeks out of the calendar year and paid $1,500 or more in wages in a calendar quarter. These plans, also known as the reemployment tax, are required and are typically managed directly through the Florida Department of Revenue.
• Commercial Auto Insurance. Cars, trucks, and other types of motorized vehicles can be crucial parts of your business. Because of this, Florida insurance laws require that all vehicles operated by employees or used in business operations must be insured. Learn more about the requirements for obtaining commercial auto insurance in Florida.

State law requires a minimum of $10,000 for personal injury protection in case of any sort of crash, and an additional $10,000 to cover property damage liability. If your business depends on a vehicle, investing more could be in your best interest.

These are the three that will most likely apply to any business opening in Fort Lauderdale. Each requirement does have options to opt out of in the statutes, but that changes from case to case.

Additional Business Insurance Coverage to Consider

Workers’ compensation, reemployment tax, and commercial auto insurance are all that is required for a business, but are not the only insurance options that could be smart investments. The following are just a few of the many types of coverage a Fort Lauderdale business owner may be interested in purchasing so as to protect themselves from any unforeseen future troubles:

• Liability protection. Coverage under this category is to help protect against any injuries that occur in or around your business. It can offer an extra safeguard so you don’t end up paying out of pocket for medical bills or legal defense if sued for personal injury.
• Property coverage. Insurance that can help your location against any unforeseen environmental damages, such as weather, fire, or simply a broken window.
• Business interruption. Protection of this nature is good for matching any income lost due to any work stoppage. The nature of small businesses means that a plethora of professional and personal matters can lead to a loss of productivity. This coverage can protect against interruption to income, matching lost income while any issues are resolved.

These are just a few examples of all the potential coverage that might fit your business. Paying a small price today can pay off greatly tomorrow.

Hire a Business Insurance Lawyer

Knowing which statutes apply to you and sifting through business insurance laws on your own can be overwhelming. That’s why it can be a great idea to hire a business insurance lawyer who can help with all the specifics. A business insurance attorney can recommend which minimum insurance plans your business type needs, and whether or not additional coverage is wise.

A legal professional experienced in Florida business insurance by your side can take your mind off the legal details and get you back to other aspects of running your business.

FAQs

Q: What Insurance Is Mandatory for a Small Business in Florida?

A: The three basic plans necessary for all Fort Lauderdale small businesses are workers’ compensation, the reemployment tax, and commercial auto insurance. There may be some exceptions, such as if you are a single-person company, but generally, if a business operates with employees in Florida, then these three are mandatory.

Q: Do All Businesses in Fort Lauderdale Require the Same Insurance Plans?

A: No, all businesses do not require the same insurance plans. The specifics of your business will determine what plans you need in Fort Lauderdale. Construction versus non-construction, or food service versus retail, all carry with them different legal constraints. Whether you are opening a restaurant along Fort Lauderdale Beach or a boutique on Las Olas Boulevard, talk to a business insurance attorney to determine what path forward is suitable for your business plan.

Q: What Happens if You Don’t Get the Necessary Insurance Coverage?

A: The penalties for not getting the three necessary coverages range in severity. When the state discovers a failure to acquire coverage, it can issue a stop-work order within 72 hours that requires a business to pause all work. The business will then be charged double the premium not paid for up to three years or a minimum of $1000.

These are just a few penalties one might face if a business avoids insurance coverage. If you believe that you are exempt from paying for some coverage, speak with a business attorney right away.

Contact Us Today

Dylan Ventura at Wilson, Washburn & Forster Insurance, Inc. has a proven track record of helping Fort Lauderdale companies in a variety of insurance matters. Contact us today so we can assess your unique needs and determine what coverage suits your business.