Florida Private Provider Insurance (F.S. 553.791): What You Need

We work with a lot of firms doing plan review and code compliance inspections in Florida. Almost every one of them has the same problem at some point: the policy they have was written for something they don’t do.

To be super clear, a private provider is not a design firm. You review plans and inspect work against the building, mechanical, electrical and plumbing codes. You hold a license as an engineer, architect or building code administrator, but on these projects you aren’t designing the building. Your insurance should say that.

What the statute requires

The insurance section of Florida Statute 553.791 (subsection 18 in the current statutes) is short. Here’s what it says, in plain terms:

Professional liability covering all services you perform as a private provider. If you also do plan review, ask whether the policy covers it too.
$1 million per occurrence / $2 million aggregate for any project with a construction cost of $5 million or less.
$2 million per occurrence / $4 million aggregate for any project over $5 million. Construction cost is what’s on the building permit application.
5 years of coverage after the work if you use a claims-made policy. That means no gaps at renewal, and a plan for tail coverage if you ever stop. Tail options vary by carrier.
An insurer authorized to do business in Florida, rated A or better by A.M. Best.
A certificate of insurance on file with the local building official before you provide services in that jurisdiction.

The statute also lets the owner ask for more. These are minimums.

The “authorized insurer” problem

This is the part nobody explains. Most professional liability for small design and inspection firms is written by surplus lines (non-admitted) carriers. Under Florida insurance law, an authorized insurer generally means one holding a certificate of authority from the state. Surplus lines carriers work under a different set of rules.

We’ve had underwriters tell us their surplus lines or Lloyd’s policy satisfies 553.791 anyway. Maybe it does. But if a building official or an owner’s attorney reads the statute the other way, the risk sits with you, not the carrier.

So we do two things:

Ask the underwriter to confirm in writing that the policy meets the insurance requirements of 553.791.
Quote an admitted carrier alongside it, so you have a clean option if the answer isn’t clean.

Why private providers end up with the wrong policy

The application is usually the cause. An engineering application asks about design, structural, geotechnical and construction management. If you answer it like a design firm, the underwriter prices and words the policy like one.

The details underwriters actually want from a private provider:

Plan review vs. inspections, and in-person vs. virtual.
Residential vs. commercial, and the largest construction cost you take on.
How much of your review touches structural sheets. A quick audit of your recent projects, showing what share of plan sheets are structural, gives underwriters something concrete instead of a guess.
What you don’t do: structural design, threshold inspections, geotechnical work, materials testing, construction management.

Put that in writing up front. It saves weeks of back and forth, and it keeps the policy wording matched to the work.

Watch the exclusions

Two come up a lot with private providers:

Condominiums. Some carriers exclude condominium work entirely. If you do single-unit interior renovations in condo buildings, ask whether that counts. Get the answer in writing. See how condo exclusions work.
Specialty services. Admitted carriers often list services they won’t cover (asbestos, site safety consulting, CM at risk, materials testing, geotechnical and more). If you don’t do them, confirm it in writing so it doesn’t become a question later.

Before you send a certificate to a building official

Limits match the largest project you’ll inspect.
The policy describes private provider services, not engineering design.
You know whether the carrier is admitted or surplus lines, and you have something in writing either way.
If it’s claims-made, you know your retro date and your plan for 5 years after.

If any of those is a maybe, send us the policy and the requirements. We’ll tell you what we see.

Florida Private Provider Insurance: Common Questions

What insurance does a Florida private provider need?

Professional liability covering all private provider services. F.S. 553.791 sets minimums of $1 million per occurrence and $2 million aggregate for projects with a construction cost of $5 million or less, and $2 million per occurrence and $4 million aggregate for projects over $5 million. You file a certificate of insurance with the local building official before you start.

How is construction cost measured for the $5 million threshold?

The statute uses the total cost of building construction as stated on the building permit application. If you take any project over $5 million, plan on carrying the $2 million / $4 million limits.

Do I need tail coverage as a private provider?

If your policy is claims-made, the statute says you must maintain coverage for at least 5 years after you perform the inspection services. In practice that means renewing without a gap, and planning for tail coverage if you stop. Tail options and lengths vary by carrier, so ask before you need one.

Can a surplus lines or Lloyd's policy meet the requirement?

That is the open question. The statute says the insurance must be written only by insurers authorized to do business in Florida with an A.M. Best rating of A or better. Surplus lines carriers are generally treated differently from admitted, authorized carriers under Florida law. Some underwriters take the position their policy qualifies. Get it in writing, and ask your building officials what they accept.

Is a private provider the same as an engineer for insurance purposes?

No, and treating it that way is the most common mistake. Plan review and code compliance inspections are a different exposure from engineering design. If the application reads like a design firm, you can end up priced, excluded or worded for work you do not do.

General information, not legal advice or a statement of coverage. Read the current statute and confirm requirements with the building official and your attorney. Coverage depends on the policy as issued.

Florida Private Provider Insurance: What 553.791 Actually Requires