Commercial Insurance
in Florida

A personal auto policy usually will not cover a vehicle used for business

This is the most expensive assumption a small business owner can make. Personal auto policies generally contain exclusions for business use, and “business use” is broader than people expect: hauling materials and tools to job sites, making deliveries, carrying paying passengers, or letting employees drive can all fall outside what a personal policy agreed to insure.

The failure mode is quiet. Nothing goes wrong until there is a claim, and then coverage is denied for a vehicle the owner believed was insured. If the truck is titled to the company, carries your signage, tows a trailer of equipment, or is driven by anyone on payroll, it belongs on a commercial policy rather than a personal one.

Commercial auto liability requirements rise with vehicle weight

Florida sets additional liability requirements for commercial motor vehicles based on gross vehicle weight, under Fla. Stat. 627.7415. These are combined bodily injury and property damage amounts per occurrence, in addition to other applicable requirements:

• 26,000 to 34,999 lbs gross vehicle weight: $50,000
• 35,000 to 43,999 lbs: $100,000
• 44,000 lbs and above: $300,000
• USDOT-regulated interstate operations: federal minimums under 49 CFR 387 subparts A and B apply, commonly $750,000 or more for general freight and higher for hazardous materials or passengers

Not every business vehicle falls into those weight tiers

The weight-based figures above apply to commercial motor vehicles as defined in the statute. A contractor’s pickup under 26,000 pounds is generally not subject to those specific tiers, which surprises owners in both directions — some assume they need $300,000 combined limits they do not, and others assume no commercial requirements touch them at all.

What almost always does apply is the practical requirement: the entity asking for proof. Lenders, equipment lessors, general contractors and municipalities routinely set contractual limits well above any statutory minimum. In day-to-day operation, the contract in front of you dictates the limits you carry more often than the statute does.

Certificates of insurance, additional insureds and waivers of subrogation

Most commercial insurance conversations start because somebody asked for paperwork. A certificate of insurance is evidence that coverage exists on the date it was issued — it is not the policy, and it does not by itself give the requesting party any rights under your coverage.

When a general contractor or landlord asks to be named as an additional insured, they are asking to be protected under your policy for claims arising out of your work. A waiver of subrogation goes further and gives up your insurer’s right to pursue them after paying a claim. Both change your policy and both need to be arranged deliberately, so send us the contract language rather than the summary — the exact wording determines what endorsement is actually required.

What to have ready for a commercial quote

Commercial underwriting asks more questions than personal lines because the exposures vary so much between two businesses with the same label. Having these ready shortens the process considerably.

• Legal entity name, structure and years in operation
• A plain description of what you actually do day to day, including any subcontracted work
• Annual revenue and payroll, split by class of work if it varies
• Number of employees, and whether any are drivers
• Vehicle schedule with year, make, model, VIN and gross vehicle weight
• Property values: building, contents, tools and equipment
• Any contract that specifies required limits or endorsements
• Loss history for the past several years, if there is any