3.3 Florida General Liability Insurance
Key Takeaways
- Florida follows pure comparative negligence, allowing recovery even if more than 50% at fault
- Commercial general liability (CGL) policies use file and use rate regulation in Florida
- Florida has specific requirements for professional liability for certain licensed professions
- Punitive damages are generally NOT insurable in Florida under public policy
- Products liability follows strict liability for manufacturing defects
Florida has specific requirements and laws affecting general liability insurance that agents must understand.
Pure Comparative Negligence
Florida follows pure comparative negligence:
How It Works
- Fault is allocated among all parties
- Recovery is reduced by percentage of fault
- No bar to recovery - even at 99% fault, can recover 1%
- Different from modified comparative negligence states
Example
If Plaintiff is 70% at fault and Defendant is 30% at fault:
- Plaintiff can recover 30% of their damages
- In a modified state, plaintiff would recover NOTHING
Exam Tip: Florida's pure comparative negligence is more plaintiff-friendly than states with a 50% or 51% bar.
Joint and Several Liability
Florida modified joint and several liability:
| Defendant Fault | Liability Rule |
|---|---|
| More than 50% responsible | Joint and several for economic damages only |
| 50% or less responsible | Several liability only (their share) |
Commercial General Liability (CGL)
Florida CGL policies must comply with state requirements:
Rate Regulation
Under file and use:
- Rates filed with OIR
- Can be used immediately upon filing
- Subject to post-implementation review
- Must be actuarially justified
Required Elements
- Occurrence vs. claims-made coverage clearly disclosed
- Coverage territory defined
- Limits per occurrence and aggregate
- Defense costs—duty to defend
- Exclusions clearly stated
Professional Liability
Florida requires or regulates professional liability for various professions:
State Requirements
| Profession | Requirement |
|---|---|
| Physicians | Financial responsibility required |
| Attorneys | Must disclose if no coverage |
| Architects | May be required by contract |
| Engineers | May be required by contract |
| Real Estate Brokers | Recommended but not required |
| Insurance Agents | Recommended but not required |
Medical Malpractice
Florida has specific medical malpractice provisions:
- Pre-suit investigation required
- Expert witness requirements
- Caps on non-economic damages (subject to constitutional challenges)
- Arbitration options
Punitive Damages
Unlike some states, Florida generally does NOT allow insurance for punitive damages:
Florida Rule
| Feature | Details |
|---|---|
| Insurability | Generally NOT insurable |
| Public Policy | Against insuring punitive damages |
| Coverage | Policy language cannot override |
| Exception | Vicarious liability situations may differ |
Key Difference
- Florida is more restrictive than Texas on punitive damages
- Punitive damages meant to punish—insurance defeats purpose
- Direct wrongdoer cannot insure punitive damages
Products Liability
Florida products liability:
Coverage
- Bodily injury from defective products
- Property damage from defective products
- Products-completed operations hazard
- Aggregate limits apply
Florida Law
| Type of Defect | Standard |
|---|---|
| Manufacturing Defect | Strict liability |
| Design Defect | Risk-utility balancing |
| Failure to Warn | Adequacy of warnings |
| Statute of Repose | 12 years for products |
Premises Liability
Florida premises liability follows:
- Duty varies by visitor status
- Invitees owed highest duty
- Licensees owed intermediate duty
- Trespassers owed limited duty
Under Florida's pure comparative negligence rule, can a plaintiff recover damages if they are 80% at fault?
Under Florida law, are punitive damages generally insurable?