General Liability and Workers Comp Insurance, Plus the BOP: A Florida Small Business Guide
If you run a small business in Orlando, Apopka or anywhere in Central Florida, you will hear three terms again and again: general liability and workers comp insurance, and the business owners policy, or BOP. They protect against very different risks, and Florida law treats them differently too. This guide builds on our earlier post, What Small Business Owners Should Understand, with a closer look at these three coverages.
General Liability: When Customers or the Public Are Hurt
Commercial general liability (CGL) protects your business if it is held responsible for:
Bodily injury to someone who is not your employee, such as a customer who slips in your store.
Property damage to someone else's property, such as a contractor damaging a client's floor.
Personal and advertising injury, such as certain claims of libel or copyright infringement in your advertising.
It usually also pays legal defense costs. General liability is not generally required by Florida state law for most businesses, but landlords, clients, general contractors and licensing boards often require it. Some licensed contractors, for example, must show proof of liability coverage to get or keep their license.
What it does not cover: injuries to your own employees (that is workers comp), professional mistakes (professional liability), vehicles (commercial auto) and your own property.
Workers' Compensation: When Employees Are Hurt
Workers' compensation pays for medical care and part of lost wages when an employee is injured on the job or gets a work-related illness, regardless of fault. In exchange, employees generally cannot sue the employer for those injuries.
Florida Workers' Comp Rules
Per the Florida Department of Financial Services, Division of Workers' Compensation:
Construction industry: employers with one or more employees must carry coverage. Corporate officers and LLC members count as employees.
Non-construction industry: employers with four or more employees, including corporate officers or LLC members, must carry coverage.
Agricultural industry: employers with six regular employees and/or 12 seasonal workers who work more than 30 days in a season, or more than 45 days total in the same calendar year.
Some details business owners should know:
Exemptions. Eligible corporate officers and LLC members can apply to the state to exempt themselves. Construction exemptions have stricter limits than non-construction ones.
Sole proprietors and partners in non-construction businesses are not counted as employees unless they elect to be covered.
Contractors must make sure subcontractors have coverage. If a sub is uninsured, the sub's workers can be treated as the contractor's employees.
Penalties. The state can issue stop-work orders and penalties to employers who are required to carry coverage and do not.
Even if you fall below the threshold, it can be worth considering coverage, since a serious injury could otherwise lead to a lawsuit.
The Business Owners Policy (BOP)
A business owners policy bundles three core coverages into one package for eligible small and mid-sized businesses:
General liability
Commercial property: your building (if you own it), equipment, furniture and inventory
Business interruption (business income): lost income and ongoing expenses if a covered loss forces you to close temporarily
Insurers often allow optional add-ons such as equipment breakdown, data breach or hired and non-owned auto. BOPs are commonly designed for lower-risk businesses such as offices, small retailers and some service businesses. Eligibility depends on the insurer, your industry, size and revenue.
Important: a BOP does not include workers' compensation, professional liability or commercial auto. Those are separate policies.
Putting It Together
Risk | Coverage |
Customer injured at your shop | General liability (in a BOP or standalone) |
Employee hurt on the job | Workers' compensation |
Fire damages your equipment | Commercial property (in a BOP) |
Closed for repairs after a covered loss | Business income (in a BOP) |
Employee crashes a company van | Commercial auto |
Questions to Ask Before Buying
How many employees do I have, counting owners who are officers or LLC members?
Is my work classified as construction?
Do my lease or client contracts require specific liability limits or "additional insured" status?
Would I qualify for a BOP, or do I need separate policies?
Frequently Asked Questions
Do I need workers' comp in Florida if I have three employees? If you are in a non-construction industry and have three employees (counting officers/LLC members), you are generally below the four-employee threshold. Construction businesses with even one employee must carry it. Confirm your situation with the Division of Workers' Compensation.
Does a business owners policy include workers' comp? No. Workers' compensation is always a separate policy.
Is general liability required in Florida? Not by general state law for most businesses, but it is often required by landlords, clients and certain licensing boards.
Protection For Tomorrow Starts Today
Fortrest Insurance is an independent agency based in Apopka, serving Orlando, The Villages and the surrounding counties. We are not quoting yet, but we will be soon. Join our mailing list to be first in line for quotes this winter. The sign-up form is on our homepage. Questions in the meantime? Call 689-375-6407 or email info@fortrestinsurance.com.
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