Protect Your Business with Commercial Auto Insurance in Louisiana
Part of our guide to general contractors insurance in Louisiana.
A single at-fault accident in Louisiana can expose your general contracting business to over $100,000 in liability and property damage claims. Commercial Auto insurance caps this downside, covering vehicles used for business, including liability, collision, and physical damage for company cars, vans, and trucks. This coverage is particularly crucial in Louisiana, where hurricane and tropical storm risk is high and litigation for personal injury claims is common. General contractors in Louisiana need Commercial Auto to protect their business and comply with client requirements.
Commercial Auto cost for general contractors in Louisiana
Illustrative monthly commercial auto estimate for a small general contractor operation in Louisiana. Actual pricing depends on revenue, payroll, coverage limits, claims history, and carrier. Get a personalized quote to see your real price.
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What Commercial Auto Covers for General Contractors in Louisiana
Commercial Auto insurance for general contractors in Louisiana covers liability, collision, and physical damage for business-owned or leased vehicles, including company cars, vans, and trucks. This coverage handles claims like at-fault accidents causing injury and property damage on the road. However, it does not cover general liability or workers' compensation claims, which are handled by separate policies. For example, if a general contractor's employee is driving a company truck and gets into an accident, Commercial Auto insurance will cover the resulting liability and property damage claims. On the other hand, if a contractor is sued for faulty workmanship, a different policy, like Professional Liability, would respond.
Do General Contractors in Louisiana Need Commercial Auto?
While Commercial Auto insurance is not legally required for all general contractors in Louisiana, it is often contractually required by clients, landlords, or contractors. Nearly every commercial client, real estate developer, and lender in Louisiana requires general contractors to carry at least $1 million in general liability and workers' compensation insurance, often with umbrella coverage, as a condition of signing any construction contract. Without Commercial Auto insurance, a general contractor may be unable to secure contracts or may be held personally liable for accidents involving business-owned vehicles. In practice, this means that general contractors in Louisiana need Commercial Auto insurance to protect their business and comply with client requirements.
A Real Commercial Auto Claim a General contractor Could Face
On a humid morning in New Orleans, a general contractor's employee was driving a company truck to a job site when he lost control of the vehicle and collided with another car, causing $50,000 in property damage and injuring the other driver. The general contractor's Commercial Auto insurance policy covered the resulting liability and property damage claims, paying out $75,000 to settle the lawsuit. Without Commercial Auto insurance, the general contractor would have been personally liable for the damages and could have faced financial ruin. In this scenario, Commercial Auto insurance protected the general contractor's business from a significant financial loss.
What Commercial Auto Costs for General Contractors in Louisiana
Estimated Commercial Auto premiums in Louisiana range from $110 to $340 per month, varying based on factors like revenue, payroll, coverage limits, deductible, and claims history. The state's high hurricane and tropical storm risk, as well as its active litigation environment for personal injury claims, can increase premiums. However, general contractors can lower their premiums by maintaining a good driving record, installing safety devices in their vehicles, and bundling policies with the same insurer. For example, a general contractor in Lafayette with a good driving record and a $1 million liability limit may pay a lower premium than a contractor in Shreveport with a poor driving record and a $500,000 liability limit.
How to Get Commercial Auto in Louisiana
To get Commercial Auto insurance in Louisiana, general contractors should gather information about their business, including revenue, payroll, and contract requirements. They should also research different insurers and compare quotes to find the best coverage for their needs. When comparing quotes, general contractors should consider factors like coverage limits, deductible, and premium. For example, a general contractor in Baton Rouge may need to carry at least $1 million in liability coverage to comply with client requirements. To get started, general contractors should have their revenue, payroll, and contract limit requirements ready and compare Commercial Auto quotes from different insurers.
Frequently asked questions
Will my Commercial Auto premium jump after one claim?＋
Yes. A single claim can increase premiums by up to 20%. However, some insurers offer accident forgiveness programs or discounts for safe driving records, which can help mitigate premium increases. Additionally, general contractors can lower their premiums by maintaining a good driving record and installing safety devices in their vehicles.
Can I get a COI same-day for a client?＋
Yes. Many insurers offer same-day COIs for general contractors in Louisiana. However, this may require additional documentation, such as proof of insurance and business licenses. General contractors should check with their insurer to see if same-day COIs are available and what the requirements are.
Does a sole proprietor need Commercial Auto?＋
Yes. Even sole proprietors need Commercial Auto insurance if they use their personal vehicle for business purposes. This is because personal auto insurance policies often exclude business use, leaving sole proprietors vulnerable to liability and property damage claims. Commercial Auto insurance can provide sole proprietors with the necessary coverage to protect their business and personal assets.
What's not covered by Commercial Auto?＋
Commercial Auto insurance does not cover general liability or workers' compensation claims, which are handled by separate policies. Additionally, it may not cover vehicles used for personal purposes or vehicles that are not registered or titled in the business's name. General contractors should review their policy to understand what is and is not covered.
Can I cancel my Commercial Auto policy at any time?＋
Yes. General contractors can cancel their Commercial Auto policy at any time, but they may be subject to penalties or fees for early cancellation. Additionally, canceling a policy may leave a business vulnerable to liability and property damage claims. General contractors should carefully review their policy and consider their options before canceling.
Do I need to carry Commercial Auto insurance if I only have one vehicle?＋
Yes. Even if you only have one vehicle, you still need Commercial Auto insurance if you use it for business purposes. This is because personal auto insurance policies often exclude business use, leaving you vulnerable to liability and property damage claims. Commercial Auto insurance can provide you with the necessary coverage to protect your business and personal assets, regardless of the number of vehicles you own.
Can I get a discount on my Commercial Auto premium?＋
Yes. Many insurers offer discounts for general contractors in Louisiana who maintain a good driving record, install safety devices in their vehicles, or bundle policies with the same insurer. Additionally, some insurers may offer discounts for businesses that have a low claims history or that implement safety protocols, such as driver training programs. General contractors should ask their insurer about available discounts and how to qualify for them.
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Other coverages general contractors in Louisiana should know
This article is for general educational purposes and is not insurance or legal advice. Coverage requirements and pricing in Louisiana change over time and vary by business. Verify current rules with the Louisiana Department of Insurance and a licensed agent before purchasing a policy.