Most homeowners who hire a contractor do not look at insurance until something goes wrong. By then, they are learning about gaps in coverage through the most expensive possible channel: a claim, a lawsuit, or an argument with their own insurance carrier about what happened on their property. Verifying contractor insurance is not bureaucratic caution — it is the primary protective step a homeowner can take before construction starts, and it takes 30 minutes.
Florida's construction industry has a documented problem with uninsured and underinsured contractors. The Florida Department of Financial Services and the Florida Department of Business and Professional Regulation (DBPR) receive thousands of complaints annually involving unlicensed work, unpaid subcontractors, and injured workers whose employers did not carry Workers' Compensation (WC) coverage. When an uninsured worker is injured on your property, you may become the responsible party under Florida law.
This guide explains every insurance type you need to verify, how to read the Certificate of Insurance (COI) you request from your contractor, and what your own homeowner's policy does and does not cover during a construction project. JK Prestige Constructor carries current GL, WC, and Builder's Risk coverage and provides a COI to every client before contract signing. Contact us to verify our current coverage before you commit.
Why Verifying Contractor Insurance Is the Most Important Thing You Do Before Construction Begins
Florida Statute 440.10 creates joint liability for property owners when an uninsured contractor performs work on their property. If the contractor does not carry Workers' Compensation and a worker is injured on your property, you can be held liable for that worker's medical bills, lost wages, and permanent disability claims. Those claims can exceed six figures for a serious construction injury.
The risk is not theoretical. Florida consistently ranks among the states with the highest rates of uninsured construction contractors. DBPR and OSHA enforcement is concentrated on licensed contractors, but unlicensed and underinsured contractors continue operating, particularly in residential renovation where homeowners are less likely to verify credentials.
The standard to hold every contractor to: before signing a contract, request a Certificate of Insurance (COI) showing current General Liability and Workers' Compensation coverage, with you named as an additional insured and certificate holder. Then call the insurance agent listed on the COI to confirm the coverage is in force. This step takes 15 minutes and closes the most significant insurance gap most homeowners face.
A contractor who refuses to provide a COI, provides a COI that cannot be verified, or provides a COI without Workers' Compensation coverage listed is a contractor to walk away from regardless of how competitive their price is.
General Liability Insurance: What It Covers, Minimum Limits, How to Read a COI
General Liability (GL) insurance covers third-party property damage and bodily injury caused by the contractor's operations. If the contractor's crew breaks your window, floods your neighbor's basement, or damages your hardwood floors during construction, GL pays the claim.
What GL does not cover: GL does not cover the contractor's own employees' injuries (that is WC), does not cover damage to the contractor's own tools and equipment, and does not cover the work itself (defective workmanship claims are typically excluded from standard GL policies and are covered by a warranty or a separate contractor's professional liability policy).
Minimum limits for a residential GC in Florida: $1 million per occurrence, $2 million aggregate (the maximum the policy pays in a single policy year). Larger commercial projects warrant higher limits — $2 million per occurrence or $5 million aggregate. JK Prestige's GL policy for residential and commercial work carries limits appropriate to the project scope and available on the COI provided before contract signing.
How to read a GL COI:
A Certificate of Insurance (COI) is a one-page ACORD form (ACORD 25 is the standard). Key fields to verify:
- Insured: Should be the contractor's legal business name — not a DBA or individual name.
- Producer: The insurance agent or broker who issued the policy. Call this number to verify coverage.
- Policy number: Verify this number exists in the insurer's records when you call the agent.
- Policy effective dates: Coverage must be current — the effective date must be before your project start, and the expiration date must be after your projected project completion.
- Limits: Read the "Each Occurrence" and "General Aggregate" limits.
- Additional Insured: Your name and address should appear in the "Certificate Holder" box and in a specific additional insured endorsement referenced in the Description of Operations section.
A COI with no additional insured endorsement referencing you does not provide you with coverage under the policy. The additional insured endorsement is what gives you the right to make a claim under the contractor's policy.
Workers' Compensation: What It Covers, Why It Must Be Current for Every Worker, the Risk of an Uninsured Injured Worker
Workers' Compensation (WC) is the insurance system that pays medical bills and lost wages for workers injured on the job. In Florida, WC coverage is required for construction employers with one or more employees, with no exceptions based on employee status or full-time/part-time classification.
What WC covers: Medical treatment for the injury, 66.67% of pre-injury average weekly wage during recovery, permanent impairment benefits if the injury results in lasting limitation, and death benefits ($150,000 maximum plus burial expenses under Florida Statute 440.16).
The homeowner's exposure when WC is absent: Florida Statute 440.10(1)(b) states that an owner who contracts with an uninsured contractor can be held liable as an "employer by operation of law" for that contractor's injured workers. This means an injured worker whose employer has no WC coverage can pursue a claim against you — your home, your assets — for their medical bills and lost wages. Your homeowner's insurance policy will typically not cover this claim because it arises from a business activity (construction) on your property.
Verifying WC on the COI: The COI must show WC coverage under "Workers' Compensation and Employers' Liability." The coverage section shows the WC statutory limit and the Employers' Liability limits (minimum $100,000 per occurrence, $100,000 per disease per employee, $500,000 policy limit). The NCCI (National Council on Compensation Insurance) classification code shown on the WC policy should match the work being performed — roofing work must show code 5551, framing must show 5645, general building contractors show 5403. A code mismatch is a signal that the contractor is misclassifying workers to reduce premiums, which is insurance fraud.
Subcontractors on the project: Ask whether the GC's WC policy covers all workers on your project or whether subcontractors carry their own. A responsible GC either extends WC coverage to subcontractors or requires each subcontractor to carry their own. Get COIs from subcontractors as well, or confirm in writing that the GC's policy covers all workers on the job.
Builder's Risk Insurance: Who Provides It, What It Covers, What It Does Not Cover
Builder's Risk insurance covers a structure under construction against physical loss or damage from fire, theft, vandalism, wind, and certain other perils. It is time-limited: it covers the project from groundbreaking to completion, at which point the owner's permanent property insurance takes over.
Who provides Builder's Risk: On custom new home construction, the GC typically provides Builder's Risk as part of the project cost, and the policy is in the GC's name with the owner as an additional insured. On renovation projects where the homeowner already owns and occupies the home, the homeowner's carrier sometimes provides Builder's Risk as an endorsement to the existing homeowner's policy — but this must be specifically arranged before construction begins. On larger commercial projects, the owner typically provides Builder's Risk to ensure control over the policy terms and limits.
Confirm in writing — before construction begins — who is responsible for Builder's Risk and that the policy is in force. Leaving this undefined creates a gap. If the structure under construction is destroyed by fire and neither party has Builder's Risk, the loss is uninsured.
What Builder's Risk covers: Physical damage to the structure under construction, materials on site and in transit, temporary structures (scaffolding, formwork), and labor cost to repair or rebuild damaged work. Most policies also cover equipment breakdown and collapse.
What Builder's Risk does not cover: Flood damage (requires a separate NFIP or private flood policy), earthquake, design defects, faulty workmanship, and equipment or tools not incorporated into the structure.
Coverage limit: Builder's Risk should be written for the completed value of the structure, not the current partial value. A $500,000 home should have $500,000 in Builder's Risk from day one, not a policy that escalates monthly as construction progresses.
How to Verify Contractor Insurance: Add Yourself as Additional Insured, Call the Agent
Receiving a COI is not verification. Verification requires two additional steps:
Step 1 — Name yourself as additional insured and certificate holder: Tell the contractor before they provide the COI that you need to be named as certificate holder and as additional insured on both the GL and (for additional insured status) the relevant liability policies. The contractor requests this from their agent. A COI with your name in the Certificate Holder box but no additional insured endorsement is not the same as being an additional insured. Ask specifically: "Is there an additional insured endorsement naming me attached to this COI?"
Step 2 — Call the producing agent: The COI lists the insurance agent (producer) and their phone number. Call that number. Tell the agent you are a property owner who has received a COI from their insured (give the policy number and insured name) and ask them to confirm that the coverage is current and that you are named as additional insured. A legitimate agent will confirm this in 5 minutes. An agent who cannot confirm the policy exists or refuses to confirm is a red flag requiring investigation before work starts.
Step 3 — Request updated COIs during long projects: Insurance policies renew annually. On a project that spans a renewal date (common on projects running 6+ months), request an updated COI after the renewal date to confirm coverage was renewed. A lapse in coverage during a project is the same as no coverage from the moment of lapse.
What Happens If a Worker Is Injured Without WC Coverage: The Homeowner Liability Exposure
Walk through the scenario step by step. A roofing subcontractor's worker falls from a ladder on your property. The worker is treated for a broken arm at UF Health Jacksonville — emergency care, surgery, follow-up physical therapy. Total medical cost: $60,000. The roofing subcontractor has no WC coverage.
The worker files a claim with the state Division of Workers' Compensation. FLDFS investigates and determines the employer (roofing sub) has no WC coverage. Under Florida Statute 440.10, the worker can pursue the "up the ladder" employer — the general contractor, and potentially you as the property owner — for the medical costs and lost wages.
Your homeowner's policy covers personal liability claims up to your policy limit (typically $100,000–$300,000), but most policies exclude claims arising from "business pursuits" or from intentional acts. Construction on your property — even by a contractor you hired — may be treated as a business activity that your standard homeowner's policy does not cover for worker injuries. The exclusion is in the fine print. This is why verifying WC before mobilization is not optional.
The cost of this verification: zero. Request the COI, call the agent, confirm coverage. Thirty minutes.
What Happens If the GC's Work Damages Your Property: GL Covers It, But the Claim Process
If the GC's crew causes physical damage to your property — a broken water line that floods finished floors, a subcontractor that drops a beam through a ceiling, equipment that damages a car in the driveway — the GC's GL policy is the correct coverage to make that claim against.
The claim process: document the damage immediately with photographs and written description. Notify the GC in writing and request that they report the claim to their GL carrier. The carrier assigns an adjuster who inspects the damage and determines coverage. If the claim is within the GL policy terms, the adjuster works toward a settlement.
Practical issues to anticipate: the GC may dispute that the damage was caused by their crew. Document the sequence of events, the timing, and any witnesses. The adjuster's inspection may occur days after the damage, so your documentation is critical. If the claim is large enough (over $25,000), consulting with a Florida attorney familiar with construction liability before accepting a settlement is worth the cost.
If the GC's GL carrier denies the claim because the GC's coverage had lapsed, this is why you verified the COI and called the agent. A verified, current COI is your evidence that coverage was in force on the date of the event.
Homeowner's Insurance During Construction: What Changes, When to Notify Your Carrier
Your existing homeowner's policy was priced and underwritten based on the home's condition as of the policy effective date. Major renovation changes the risk profile: the structure may be partially open to weather, there are workers on the property daily, there are materials and equipment stored on site, and there may be periods when the home is unoccupied.
When to notify your carrier: Before construction begins. Call your homeowner's insurance agent and describe the project scope, start date, estimated completion date, and whether you will be living in the home during construction. Ask whether your current policy covers: (a) fire or weather damage to the structure during construction, (b) theft of personal property from the home during construction, and (c) liability for injuries to construction workers.
What renovation may void or limit coverage: Policies typically have vacancy clauses that reduce or eliminate coverage if the home is unoccupied for 30–60 consecutive days. A home where the owner has moved out during a major renovation may trigger this clause. Some policies also exclude coverage for damage that occurs because the structure was left "open to the elements" during construction — a window opening without temporary protection, or a roof deck exposed for days during a re-roof.
Your carrier may: (a) extend your existing coverage with a renovation endorsement, (b) require a separate Builder's Risk policy, or (c) require you to purchase a homeowner's policy designed for homes under renovation. Get the answer in writing before construction starts.
Builder's Risk Gap: Coverage from Structure Delivery to Occupancy
The Builder's Risk policy terminates when the structure is delivered — when the certificate of occupancy is issued or when the GC's contract is completed. The homeowner's permanent property insurance takes over at that point. The gap occurs when there is a delay between certificate of occupancy and actual occupancy of the structure.
On a new custom home build in Jacksonville, there may be a period of 1–4 weeks between certificate of occupancy and the homeowner moving in. During that period, if Builder's Risk has been cancelled by the GC and the homeowner's policy has not yet been activated for the new address, the structure is uninsured.
Coordinate with both the GC and your homeowner's insurance agent before closing out the construction contract. Confirm the exact date Builder's Risk terminates and the exact date your permanent property insurance activates. There should be no gap between the two. If there is a gap, bridge it with a short-term extended Builder's Risk endorsement.
JK Prestige's Insurance Program: Current GL, WC, Builder's Risk, COI Available Before Contract Signing
JK Prestige Constructor carries current General Liability insurance (limits available on request, appropriate to project scope), Workers' Compensation covering all JK employees and field workers, and Builder's Risk for construction projects where JK is responsible for providing coverage under the contract terms.
We do not begin work without providing a COI to the client with the client named as certificate holder and additional insured. This is not a request we fulfill reluctantly — it is our standard practice because we believe owners deserve to verify that the GC they are trusting with their property is properly insured.
For subcontractors working on JK Prestige projects, we verify COIs before first mobilization and require re-verification on each policy renewal. As the controlling employer on our sites, our insurance program assumes that our subcontractors maintain their own current coverage. A subcontractor who cannot provide a verified COI does not mobilize on a JK Prestige project.
Contact JK Prestige to request our current COI or to discuss your project's specific insurance requirements before contracting.
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