Fence contractors dig dozens of holes on every job, often in yards full of buried lines, and they build barriers that keep children out of pools and livestock and people where they belong. The claims that follow are often about what was under the ground or what the fence was supposed to do.

This page explains, as education, the insurance and risk issues that matter to owners of residential, commercial and pool fence businesses in North Central and Northeast Florida.

What fence owners deal with day to day

  • Utility strikes. Augering post holes into gas, power, water, irrigation or communications lines.
  • Pool barriers. Fences and gates that are part of a pool’s required safety feature.
  • Property lines. A fence built on the wrong side of the line can lead to a removal and rebuild dispute.
  • Tools and machines. Augers, post drivers, saws and nail guns cause injuries.
  • Materials and trailers. Loads of posts and panels on trailers moving between jobs.
  • Damage to the customer’s yard. Irrigation, landscaping and driveways.

Typical claims in fence work

Without quoting statistics, fence contractors see utility strike claims, damage to irrigation and landscaping, and claims tied to gates and pool barriers. Workers’ comp claims tend to involve strains, cuts and auger or tool injuries. Auto claims come from trucks pulling loaded trailers.

Coverage at a glance

Coverage Why it matters here Learn more
General liability, including completed operations Utility strikes, yard damage and claims tied to fences and gates after the job General liability
Workers’ compensation Required in construction with one employee Workers’ comp
Inland marine (tools and equipment) Augers, post drivers, saws and tools Ask us about tool and equipment coverage
Commercial auto Trucks and trailers Commercial auto
Commercial umbrella Extra limits above auto and general liability Umbrella
Bonds License and permit bonds some cities and counties require Bonds

What your contracts ask for, in plain words

Most of the insurance questions fence contractors face start in a contract, not a policy. Before you sign, read the insurance section and the indemnity section together, because one tells you what you promised to pay for and the other tells you what insurance has to back it up. These are the terms you’ll see most:

  • Minimum limits. The contract lists dollar amounts for general liability, auto, workers’ comp employer’s liability and often an umbrella. Your limits have to meet or beat those numbers on the day you start work.
  • Additional insured. The general contractor or owner wants to be covered under your policy for claims that come out of your work. Many contracts ask for this both while you’re working (ongoing operations) and after the job is done (completed operations), and the endorsement on your policy has to match what the contract says.
  • Waiver of subrogation. After your insurance company pays a claim, it normally has the right to go after whoever caused the loss. A waiver gives up that right against the party named in the contract. It usually takes an endorsement, sometimes on several policies including workers’ comp.
  • Primary and noncontributory. If the contract asks for it and your policy has an endorsement that provides it, your policy pays first for the other party’s covered claim and doesn’t ask their own insurance to share the loss. It isn’t automatic; it takes endorsement wording.
  • Per project aggregate. Some contracts want your general liability aggregate limit to apply separately to each job, so a large claim on one project doesn’t use up the limit for the others.
  • Survey and permit responsibility. Your contract should say who is responsible for locating the property line and pulling the permit. If it’s you, keep the survey with the job file.

If a contract asks for something your policy can’t do, the time to find out is before you sign. Send us the insurance pages of the contract and we’ll tell you how they line up with your policy and what may need an endorsement. For indemnity and other legal terms, talk with your attorney.

Certificates of insurance: what you’ll be asked for

A certificate of insurance is the one-page summary a GC, owner or property manager asks to see before your crew can start. A certificate is for information only. It doesn’t change or add coverage, which is why careful GCs also ask for copies of the endorsements behind it. Expect requests to show:

  • Policy numbers, dates and limits for general liability, auto, workers’ comp and umbrella
  • The certificate holder’s exact legal name and address
  • Additional insured, waiver of subrogation and primary and noncontributory wording, with the endorsement forms attached when the contract calls for them
  • Workers’ comp coverage, or a copy of the exemption certificate for a qualifying corporate officer or LLC member

Keep one person in your office in charge of certificates, and keep a list of which jobs need updated ones at renewal. You can send requests through our certificate request form.

Workers’ comp for your crew and your subs

Florida treats fence installation as construction for workers’ comp. That changes the rules in three ways owners feel directly.

  • One employee is enough. In construction, a business with even one employee has to carry workers’ comp, and an owner who is a corporate officer or LLC member counts unless they’ve filed an exemption. Most non-construction businesses don’t have to until they have four or more employees, full- or part-time.
  • Officer exemptions are narrower. Up to three corporate officers or LLC members who each own at least 10% of the business (three total across affiliated companies) can apply for an exemption through the Division of Workers’ Compensation. It costs $50, lasts two years and is renewed online. An exempt officer or member isn’t covered for their own injuries, so think about health and disability coverage too.
  • You’re responsible for uninsured subs. Under Florida law, if a sub doesn’t have coverage, the contractor above them is treated as the employer of that sub’s workers for comp purposes. That’s why you have to collect each sub’s certificate or exemption before they start, and why it has to stay current for the whole job.

Why audits bring surprise charges

Comp premium starts as an estimate based on the payroll you expect. After the policy ends, the insurance company audits the real numbers. Florida’s audit rules tell auditors to review every source of payment to employees, subcontractors and independent contractors, and to look at the certificates your subs gave you. If a sub can’t show workers’ comp coverage or a valid exemption, Florida law counts the people you paid through that sub as your employees for comp purposes, so the auditor can add those payments to your payroll and charge premium on them. Construction employers large enough to have an experience mod must be audited at least once a year.

Being uninsured is expensive too. The state can issue a stop-work order, and the penalty is two times what the employer would have paid in premium over the prior 12 months, or $1,000, whichever is more.

Report every injury to us or your insurance company right away. Florida requires the employer to report an injury to its carrier within 7 days after learning of it. Read more on our workers’ compensation page.

Your experience mod (EMR): what it is and why GCs ask

If your workers’ comp premium is large enough, your business gets an experience modification factor, often called the mod or EMR. It compares your company’s actual workers’ comp losses with what’s expected for a business of your size doing the same type of work. A mod of 1.00 is average. Below 1.00 is a credit, and above 1.00 is a debit that raises your premium. Small or new businesses that don’t meet the size threshold don’t have one.

Who calculates it in Florida

Florida uses the experience rating plan run by NCCI, the National Council on Compensation Insurance. NCCI calculates the mod, not your agent and not your insurance company. It normally uses three years of payroll and claims, and it leaves out the most recent year before the mod takes effect, because those claims are still too new to judge.

Why it matters when you bid

General contractors, owners and bid packages often ask for your mod, and some use it to prequalify fence subs before you’re allowed to bid. A mod above 1.00 can keep you off a bid list even when your price is right, because the GC reads it as a sign of how safely you work.

Why frequency usually moves it more than one big claim

The formula weighs the first part of every claim heavily and only part of the cost above that. So a string of small injuries usually raises a mod more than one large one. Under NCCI’s experience rating plan, a medical-only claim (one with no lost-time benefits) generally counts at only 30% of its cost in your mod where NCCI’s Experience Rating Adjustment applies. Report every injury, even small ones. Florida requires employers to report an injury to their insurance company within 7 days of learning of it, and paying a claim yourself instead of reporting it can put you out of compliance and leave the worker without benefits the law gives them. Where the ERA applies, medical-only claims already count at a reduced value in the mod, so there’s little reason to pay them yourself.

What you can do about your mod

  • Run a written safety program that fits your actual work, and hold short, regular crew talks, for example on auger safety, lifting and heat
  • Report every injury the same day, so the claim is handled before costs grow
  • Offer light or modified duty so injured workers can come back sooner, since lost-time claims usually cost more than medical-only ones
  • Ask us for your mod worksheet each year and check it: wrong payroll, a claim that isn’t yours or a closed claim still showing reserves can all push the number up
  • Make sure each employee is in the right class code and your payroll is reported correctly, because the mod is built on those numbers

Want to go deeper? Our experience mod guide explains which years count, why small claims add up and how to read your mod worksheet.

Trucks, trailers and tools

Trucks and trailers need commercial auto coverage, with drivers listed and their records checked. Augers, post drivers and tools should be covered by inland marine. See also our post on employees driving personal vehicles.

Florida rules: licensing, 811 and pool barriers

Florida doesn’t have a separate mandatory statewide license for fence contractors. Under a 2021 state law, cities and counties can keep licensing fence installation only if they required that license before January 1, 2021, so rules vary. Permits are still commonly required, so check with each jurisdiction where you work.

Post holes count as excavation under Florida’s damage prevention law, so call Sunshine 811 at least two full business days before you dig.

When a fence is the safety feature for a new residential pool, it has to meet Florida’s pool barrier requirements, including height, gaps and gate rules. If your gate or fence doesn’t meet the statute, the pool may not pass final inspection and you may face a claim.

Practical risk management steps

  • Call 811 for every job and keep the ticket and photos of the marks
  • Ask the owner where irrigation, septic and other private lines run, since 811 member utilities mark their own lines, and consider a private locator for the rest
  • Confirm the property line with a survey or the owner’s written direction
  • Check pool fence and gate details against the statute and the local code before you build
  • Train crews on auger safety and two-person lifting
  • Secure loads on trailers and inspect hitches and chains

Questions to ask before you renew

  • Does my general liability cover utility strikes, and does it have any underground exclusion?
  • Is completed operations included for pool barrier work?
  • Are my trucks, trailers and tools listed correctly?
  • What will my experience mod be, and is the worksheet correct?
  • Are my class codes right for installers and office staff?

Frequently asked questions

Do I need to call 811 for post holes?

Yes. Florida’s definition of excavation covers any manmade cut or hole in the ground, which includes post holes, so notice is required at least two full business days before you dig.

Does Florida require a state license for fence contractors?

No. Florida doesn’t have a state fence contractor license. Cities and counties can license fence installation only if they required it before January 1, 2021, so it depends on where you work. Permits are still commonly required.

What happens if a pool fence I built doesn’t meet the rules?

The pool may not pass final inspection, and you may have to fix it. If someone is hurt, a claim could follow. Check the statute and the local code before you build.

Do I need workers’ comp with one employee?

Yes. Fence installation is construction under Florida’s workers’ comp law.

Are my augers and tools covered on the truck?

Usually not under auto insurance. Inland marine coverage is the usual way to cover tools that travel.

What is an experience mod?

It’s a number NCCI calculates from about three years of your workers’ comp payroll and claims, leaving out the most recent year. 1.00 is average.

Sources

General information, not legal or coverage advice. Coverage depends on the policy issued, its terms and underwriting, and contract requirements depend on the contract you sign. Check licensing and safety rules with the agency that enforces them.

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