August 2022

16 Florida Pool Prosm • August 2022 INSURANCE UPDATE By David Griffiths, Insurance by Ken Brown / Senate Bill 222 and your insurance Without getting too deep, SB 222 created a licensing exemption for subcontractors working under the supervision of a Florida Swimming Pool and Spa Contractors licensee which is outlined under Section 489.105(3)(j),(k),(l) F.S. Effective July 1, 2022, swimming pool subcontractors will be exempt from all state and local specialty subcontractor licensing requirements. We have been asked by multiple clients, if this law, and if so how, affects swimming pool contractors or swimming pool specialty contractors General Liability insurance. A reoccurring question is, “If my CPC license now extends to the work performed by all of my Swimming Pool Specialty Contractors, are they now also covered by my insurance, and do I no longer need to get a Certificate of Insurance from them?” Others simply ask from the opposite perspective, “If I no longer need the SPSC license am I now covered for insurance by the pool contractor’s insurance?” Or, “If I elect not to maintain the Swimming Pool Specialty Contractor license will the coverage or price of my insurance be affected?” The answer to each question is that the change in Florida law has no effect on a company’s general liability insurance policy (or any other insurance for that matter). Both the CPC and SPSC contractors continue to have the same liability coverages afforded them and the same responsibility to make sure that any subcontractor they hire continues to have insurance limits and coverages in place to conform to their insurance carrier’s requirements for subcontracted work. In fact, there is actually no reference to a license in the standard general liability policy forms used by essentially any admitted carrier in Florida. There is no reference to coverage being tied to or restricted to the policy holder’s license. The license you carry defines what types of work you can legally perform. If your operations drift outside of that license’s permissions and a local jurisdiction becomes aware, you can get in trouble, but your insurance would