"If there's a direct-hit Category 5 storm that hits Miami, you're going to see 20 insurance companies go bankrupt and are not going to be able to pay claims. It's become a big problem," said South Florida insurance broker Joseph Gendelman.

Since 2011, the contractor has been cited at least seven times for exposing workers to fall hazards.

The bad faith hurricane insurance lawsuits have primarily been targeting major property insurance carriers.

A range of factors, including business type, claims history and payroll size, affect how much workers' comp insurance costs.