Last month, a roofing contractor in Kissimmee called us after a job site theft. Someone broke into his work truck overnight and stole $18,000 worth of power tools, a laser level, and a nail gun collection he'd built over 15 years. He called his insurance company to file a claim. They told him his general liability policy doesn't cover tools and equipment.
"But I have insurance," he said. "I pay $4,200 a year."
He did. He had a great GL policy. But GL doesn't cover your tools. It never has. And nobody told him.
This is the story we hear every week. Contractors who feel protected — who ARE paying for insurance — but who have gaps they don't know about until it's too late. After auditing hundreds of contractor policies across Florida, we've identified the five most common gaps. Seven out of ten contractors we audit have at least one. Some have all five.
Gap #1: Tools & Equipment (Inland Marine Insurance)
Your general liability policy protects OTHER people from YOUR mistakes. It covers third-party bodily injury and property damage. It does NOT cover YOUR property — including the tools you use every single day.
Think about what's in your truck right now. Power tools, hand tools, diagnostic equipment, ladders, scaffolding, generators, compressors. For most contractors, that's $10,000-$50,000 worth of equipment sitting in an unlocked truck bed or a cargo van overnight.
An inland marine policy (also called a tools floater or contractor's equipment policy) covers your tools and equipment against theft, damage, and loss — on the job site, in transit, or in your vehicle.
Cost: $300-$800/year for $10,000-$30,000 in coverage. That's $25-$65/month to protect the equipment your livelihood depends on. The roofing contractor we mentioned? He would have paid $450/year. Instead, he lost $18,000. That's 40 years of premiums gone in one night.
Gap #2: Completed Operations Coverage
Your GL covers you while you're actively working on a job site. But what happens after you leave?
A plumber installs a water heater. Three months later, a fitting fails and floods the homeowner's kitchen — $65,000 in water damage, mold remediation, and temporary housing. A roofer finishes a job in June. The first heavy rain in September reveals a flashing defect — $40,000 in interior damage.
"Products-completed operations" coverage extends your GL protection to work you've already finished. Without it, every job you complete becomes an uninsured liability that follows you for years — in Florida, the statute of limitations for construction defects is 4 years, with a 10-year statute of repose.
Most standard GL policies include completed operations, but some budget policies exclude or limit it. Check your policy declarations page. Look for "Products-Completed Operations Aggregate." If it's missing or shows $0, you have a gap.
When was your last policy audit? Get a free contractor coverage review — we'll find the gaps before a claim does. It takes 15 minutes and could save you $50,000.
Gap #3: Commercial Auto (Not Personal Auto)
Here's a scenario we see constantly: A contractor drives his personal pickup truck to job sites. The truck has personal auto insurance. He uses it to haul materials, transport tools, and meet clients. He's been doing this for years without a problem.
Then he rear-ends someone on the way to a job site. His personal auto carrier investigates, discovers the truck is used for business purposes, and denies the claim. Personal auto policies contain a "business use exclusion" — if you're using your vehicle for commercial purposes at the time of an accident, your personal policy doesn't cover it.
The fix: a commercial auto policy that covers business use. Cost difference vs. personal auto: typically $800-$2,000/year more. Cost of a denied claim: $20,000-$100,000+.
Gap #4: Subcontractor Coverage Gaps
You're a general contractor. You hire a subcontractor to do electrical work. The sub's apprentice makes a wiring mistake. The homeowner's panel catches fire. $120,000 in damage.
Question: whose insurance pays? If the sub has proper insurance AND you verified it AND you have Additional Insured status on their policy — their insurance pays. If any of those conditions fail, it's coming back to you.
Proper COI tracking isn't paperwork busywork — it's the difference between "their carrier handles it" and "you're writing a six-figure check." Every subcontractor, every job, every time. Verify coverage before they start work, not after something goes wrong.
Gap #5: Workers' Comp (Yes, Even If You're Solo)
In Florida, workers' compensation is required for:
- Construction businesses: 1 or more employees (including yourself if you're not exempt)
- Non-construction businesses: 4 or more employees
But here's what many solo contractors miss: even if you qualify for an exemption, most general contractors won't hire you without workers' comp. It's not about the law — it's about the GC's insurance. If you get hurt on their job site without WC, their carrier may have to pay your medical bills. So they require WC from every sub, regardless of exemptions.
No WC = no GC contracts = no commercial work. The exemption saves you $2,000-$4,000/year in premiums but costs you access to the most profitable jobs in the market.
Think you're fully covered? 7 out of 10 contractors we audit aren't. A 15-minute policy review could save you from a six-figure gap. Call (321) 206-8035 or get a free contractor insurance audit today.
For more on how location affects your coverage needs, explore our guide to insurance requirements by state (FL, TX, GA). With U.S. construction spending hitting $2.2 trillion in 2026, the stakes for getting your coverage right have never been higher. And if your premiums feel too high, read why your commercial insurance quote is expensive — and 7 legal ways to lower it.