Florida ties a contractor’s state license to insurance. To get and keep a certified or registered license, you have to carry general liability and property damage insurance in minimum amounts set by board rule and show workers’ comp coverage or an exemption. A company that names a financially responsible officer also has to post a bond or letter of credit with the Board, and local building departments can ask for proof of coverage and, in some places, a contractor bond.

This guide pulls those rules together in one place, with the amounts and the sources. It’s written for qualifiers, owners and office managers of Florida contracting firms. The minimums here are licensing minimums, not recommendations. Your contracts will usually require much higher limits.

This is general information about Florida statutes and board rules, not legal advice. Rules change, so check the current rule with the licensing board or talk with a Florida attorney about your own license.

Which board licenses you

  • Construction Industry Licensing Board (CILB) licenses general, building, residential, plumbing, air-conditioning, mechanical, pool, sheet metal, underground utility, solar, specialty and other contractors under part I of Chapter 489, Florida Statutes.
  • Electrical Contractors’ Licensing Board (ECLB) licenses electrical and alarm system contractors under part II of Chapter 489.

Both boards are part of the Florida Department of Business and Professional Regulation (DBPR). Their insurance rules are similar in structure but use different amounts.

CILB liability and property damage minimums

Before a CILB license is issued or renewed, or its status changes, the applicant signs an affidavit that the company has public liability and property damage insurance and will keep it for as long as the license is active. Florida law requires the affidavit, and Board Rule 61G4-15.003 sets the amounts. They are aggregate amounts:

License category Public liability Property damage
General contractor $300,000 $50,000
Building contractor $300,000 $50,000
Residential contractor $100,000 $25,000
Sheet metal, air conditioning, roofing, mechanical, pool, plumbing, underground utility and excavation, solar, pollutant storage system and other specialty contractors $100,000 $25,000

CILB audits and certificates

You don’t send a certificate with every renewal. Instead, the Board runs random audits by zip code. If you’re selected, you have 30 days from the mailing of the Board’s written request to send proof that you’ve kept the required coverage since your last renewal. A certificate of insurance prepared by an insurance agency has to show, among other things:

  • The exact name of the business you qualify, plus any fictitious name or d/b/a
  • The policy number and the policy’s effective and expiration dates
  • The required aggregate amounts
  • The State of Florida, Department of Business and Professional Regulation, Construction Industry Licensing Board as certificate holder
  • A 30-day written notice of cancellation to the certificate holder
  • The agent’s signature and your correct license number

The insurance must be carried in the licensee’s name. Not responding to an audit request with proper proof is itself a violation of the rule.

ECLB liability and property damage minimums

Electrical and alarm system contractors follow Board Rule 61G6-5.008. The minimums include completed operations and products coverage:

Option Minimum
Split limits Liability of $100,000 per person and $300,000 per occurrence, plus property damage of $500,000
Combined single limit $800,000

The certificate holder must be the Department of Business and Professional Regulation, Electrical Contractors’ Licensing Board, with a 30-day cancellation notice. Binder numbers aren’t accepted in place of a policy number. By applying for renewal, the licensee certifies that the coverage has been kept continuously. The ECLB audits at least 10% of its licensees, and a selected licensee has 30 days to send proof of liability coverage and workers’ comp coverage or an exemption.

Workers’ comp and your license

  • Proof of coverage. Evidence of workers’ comp coverage under Chapter 440, or an exemption, is a condition of issuing or renewing a CILB certificate or registration.
  • New licensees planning to use an exemption. A first-time applicant can attest that they will get a workers’ comp exemption within 30 days after the license is issued.
  • Cancellation. If the state’s Division of Workers’ Compensation learns that a licensee’s policy was canceled and confirms they’re no longer covered, it reports the licensee to the Department of Business and Professional Regulation. The department notifies the licensee, who then has to show compliance with Chapter 440 and pay a $500 administrative fine. Failing to keep required workers’ comp coverage is grounds for the board to revoke, suspend or deny the certificate or registration, or its renewal.
  • Building permits. Each time an employer applies for a building permit, it has to show proof of workers’ comp coverage: a certificate of coverage, a certificate of exemption issued by the Department of Financial Services or proof of self-insurance. The certificate must show whether the coverage is a minimum premium policy.

Who has to carry workers’ comp, and who can be exempt, is covered on our workers’ compensation page.

Financial responsibility and credit (CILB)

CILB applicants for certification also have to show financial responsibility and financial stability under Board Rule 61G4-15.006:

  • Financial responsibility. A current consumer credit report with no unsatisfied judgments or liens against the applicant, or against a business the applicant previously qualified or is applying to qualify.
  • Financial stability. A FICO-derived credit score of 660 or higher. An applicant who can’t show 660 or higher meets this requirement by completing a 14-hour financial responsibility course approved by the Board.

Older guides describe posting a bond or letter of credit when a credit score falls short. The Board removed that option in April 2022, and the current rule uses the 14-hour course instead. The course doesn’t resolve unpaid judgments or liens, which still have to be cleared under the financial responsibility requirement.

Electrical contractors are reviewed under a separate ECLB rule (61G6-5.005), which looks at recent bankruptcies, unpaid judgments to suppliers and workers, tax liens and credit history.

Financially responsible officer bond

With the Board’s approval, a business organization can designate a financially responsible officer (FRO), who is responsible for all financial aspects of the business and can’t also serve as its primary qualifying agent. Under Board Rule 61G4-15.0021, an FRO must meet the financial responsibility standard above and provide a $100,000 bond or irrevocable letter of credit payable to the Board for fines and costs. Our bonds page explains how surety bonds work.

Local permit bonds and proof of insurance

  • Proof of insurance at the permit counter. Florida law lets a local government deny a building permit, or suspend one already issued, when a contractor fails or refuses to show proof of the public liability, property damage and workers’ comp coverage the license requires.
  • Local contractor bond. A city or county may require one bond per contractor, up to $5,000, conditioned only on compliance with the Florida Building Code. The bond is payable to the Florida Homeowners’ Construction Recovery Fund and filed where you pull permits, with statewide reciprocity. It counts toward any financial responsibility requirement. A contractor who provides a third-party insured warranty on a new building is exempt from this bond for that building.
  • Local requirements vary. Not every city or county requires a local contractor bond, and some have their own registration rules. Check with the building department in each place you work.

Public projects add their own bond rules. Contracts with the state or a local government to build or repair a public building or public work generally require a payment and performance bond under section 255.05, Florida Statutes. State contracts of $100,000 or less don’t require one, and a local government may waive it on contracts of $200,000 or less. See bonds for more.

Licensing minimums vs what your contracts ask for

The board minimums were last amended in 2007 (CILB) and 2008 (ECLB), and they’re low next to what most general contractors, owners and lenders require. A subcontract asking for $1,000,000 per occurrence and $2,000,000 aggregate, an umbrella and additional insured endorsements is common. Meeting the license minimum keeps your license in good standing. It doesn’t mean you’re insured for the work you take on. Our contractors insurance page explains what contracts typically ask for.

Checklist

  • Keep liability and property damage coverage at or above your board’s minimum, in the licensee’s exact business name, every day the license is active
  • Keep workers’ comp coverage or valid exemptions in force, and know the expiration dates of exemptions
  • If you’re audited, send a certificate that meets the rule by the 30-day deadline
  • Have certificates ready for each building department where you pull permits
  • Ask each local building department whether it requires a contractor bond
  • If your company has an FRO, keep the $100,000 bond or letter of credit in force

Frequently asked questions

How much liability insurance does a Florida general contractor need for the license?

Under CILB Rule 61G4-15.003, $300,000 public liability and $50,000 property damage, in aggregate amounts. Residential and most specialty contractors need $100,000 and $25,000. Contracts usually require more.

Do I send a certificate of insurance to the board when I renew?

For CILB licenses, you sign an affidavit. The Board audits a random sample. If you’re selected, you have 30 days from the mailing of the request to send a certificate that meets the rule.

What if my credit score is below 660?

Under the current CILB rule, an applicant who can’t show a FICO-derived score of 660 or higher meets the financial stability requirement by completing a Board-approved 14-hour financial responsibility course.

What is a financially responsible officer bond?

If a business designates a financially responsible officer, that officer must provide a $100,000 bond or irrevocable letter of credit payable to the CILB for fines and costs.

Does my county require a contractor bond?

Some do. Florida law lets a city or county require one bond of up to $5,000 per contractor, tied to Florida Building Code compliance. Ask each building department where you pull permits.

Sources

General information, not legal or coverage advice. Statute and rule references are summarized from the 2026 Florida Statutes and the Florida Administrative Code as checked October 31, 2026. Check current requirements with DBPR, the licensing board and your local building department. Coverage depends on the policy issued, its terms and underwriting.

McGriff-Williams Insurance is an independent insurance agency in Gainesville, in business since 1983 and licensed in Florida. We’re at 3501 W University Ave, Gainesville, FL 32607. Questions: (352) 371-7977, Monday to Friday, 9 a.m. to 5 p.m.

Last updated October 31, 2026