If you're starting a business in Florida, it's important to know any legal requirements you have for business insurance before you open your doors. While business insurance is not mandated by law in Florida, most companies are required to have specific coverage for employees.

A Florida independent insurance agent can help your business secure the coverage it needs to be protected from accidents and unexpected risks.

Is Business Insurance Required in Florida?

Florida businesses are not required to have insurance in order to operate. However, most businesses will be required by law to have workers' compensation for employees.

Even though workers' compensation is the only required business policy, most businesses can benefit from additional coverage. Speak with your Florida independent insurance agent about the following common business insurance options.

What Does the Law Require for Florida Business Owners?

Florida is home to 2.5 million small businesses and most will be required to purchase workers' compensation.

Workers' compensation is a type of insurance policy that will provide benefits to employees if they're injured or fall ill while on the job. 

Should an employee be unable to perform their job because of a work-related injury or illness, workers' compensation helps pay medical bills and employee income while the employee is out of work.

Florida workers' compensation market

Can an Employee Sue If You Don't Have Workers' Compensation Insurance?

Yes, if you choose not to purchase workers' compensation and an employee has a work-related injury or illness, they can sue you for medical bills, lost wages, and any other financial hardships that are a result of not being able to work.

"The way workers' compensation is written if you don't have it and an employee gets injured you are a sitting duck," said insurance expert Paul Martin. "The laws even strip the employer of any legal defenses they could use in a trial so you're left having to pay for the claim and all legal fees out of pocket."

10 largest workers' compensation insurers for Florida businesses

What If an Employer Doesn't Have Florida Business Insurance?

Even though business insurance is not required by law, you are risking your company, your property, and your entire business by not having proper protection.

"If you don't have insurance you can get sued and you won't have anybody to defend you," said Martin. "Defending yourself is expensive and having the right liability policies takes those costs off the table for you."

Business insurance not only pays for the lawyers you would need in a lawsuit, but also pays if you're found responsible.

Businesses face a variety of risks beyond getting sued by an employee or customer. Without insurance, if a fire, storm, or hurricane destroyed your property, inventory, or belongings, you'd have to pay for the damage yourself. 

How a Florida Independent Insurance Agent Can Help You

Florida business insurance is necessary to protect your business from unexpected risks. Without the proper coverage, you could be sued by an employer or lose all of your business equipment, inventory, and possessions from a catastrophic event.

A Florida independent insurance agent will talk with you, free of charge, about your business needs. They can make sure that you have any required insurance coverage and recommend additional policies for protection. Work with an independent insurance agent today.