General Liability Insurance for Louisiana General Contractors: A Foundation of Protection
Part of our guide to general contractors insurance in Louisiana.
A general contractor in Baton Rouge is working on a construction site when a passer-by trips over a loose wire and suffers a bodily injury. The contractor is liable for the injury, which could result in a costly lawsuit. General Liability insurance covers third-party bodily injury, property damage, and advertising injury claims, making it a crucial policy for general contractors in Louisiana. In fact, nearly every commercial client, real estate developer, and lender requires general contractors to carry at least $1 million in general liability and workers' compensation insurance as a condition of signing any construction contract. General Liability insurance provides financial protection against such claims, ensuring that the contractor's business can continue to operate without significant financial loss. Given Louisiana's high risk of hurricanes, tropical storms, and flooding, as well as its active litigation environment, General Liability insurance is not just a necessity, but a foundational policy for general contractors.
General Liability cost for general contractors in Louisiana
Illustrative monthly general liability 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 General Liability Covers for General Contractors in Louisiana
General Liability insurance for general contractors in Louisiana covers third-party bodily injury, property damage, and advertising injury claims. For example, if a client visits a construction site in Shreveport and slips on a wet floor, suffering a bodily injury, General Liability insurance would cover the resulting claim. Similarly, if a general contractor's advertising materials inadvertently infringe on a competitor's trademark, General Liability insurance would cover the advertising injury claim. However, General Liability insurance does not cover workers' compensation claims, which are covered by a separate policy. Additionally, it does not cover professional liability claims, such as those arising from faulty workmanship or design errors, which are covered by a professional liability policy.
Do General Contractors in Louisiana Need General Liability?
While General Liability insurance is not legally required for general contractors in Louisiana, it is often contractually required by commercial clients, real estate developers, and lenders. In fact, nearly every commercial client, real estate developer, and lender requires general contractors to carry at least $1 million in general liability and workers' compensation insurance as a condition of signing any construction contract. Without General Liability insurance, a general contractor in Louisiana may be unable to secure commercial contracts, which could significantly impact their business. Furthermore, the high risk of hurricanes, tropical storms, and flooding in Louisiana, as well as its active litigation environment, makes General Liability insurance a practical necessity for general contractors.
A Real General Liability Claim a General Contractor Could Face
On a humid morning in New Orleans, a general contractor's employee accidentally damages a neighboring property while working on a construction site. The neighboring property owner suffers $10,000 in property damage and files a claim against the general contractor. The general contractor's General Liability insurance policy covers the claim, paying $10,000 to the neighboring property owner. Without General Liability insurance, the general contractor would have been personally responsible for paying the claim, which could have resulted in significant financial loss. In this scenario, General Liability insurance provided financial protection against a third-party property damage claim, ensuring that the general contractor's business could continue to operate without interruption.
What General Liability Costs for General Contractors in Louisiana
The cost of General Liability insurance for general contractors in Louisiana varies depending on factors such as revenue, payroll, coverage limits, deductible, and claims history. However, the typical premium for General Liability insurance in Louisiana ranges from $40 to $120 per month. To lower their premium, general contractors can consider increasing their deductible, improving their safety record, or bundling their General Liability policy with other insurance policies. Additionally, general contractors can work with an insurance agent to identify specific factors that may be driving up their premium, such as the high risk of hurricanes and flooding in Louisiana, and develop strategies to mitigate those risks.
How to Get General Liability in Louisiana
To get General Liability insurance in Louisiana, general contractors should gather information about their business, including revenue, payroll, and coverage limits. They should also consider factors such as deductible and claims history when selecting a policy. General contractors can work with an insurance agent in cities like Lafayette to compare policies and find the best coverage for their business. By bundling their General Liability policy with other insurance policies, such as workers' compensation and commercial auto, general contractors may be able to lower their total premium. To get started, general contractors can get a quote from a licensed insurance agent today.
Frequently asked questions
Will my General Liability premium jump after one claim?＋
Yes. After a claim, your premium may increase. However, the extent of the increase will depend on various factors, including the severity of the claim, your claims history, and your policy's terms and conditions. Your insurance agent can help you understand how a claim may impact your premium and develop strategies to mitigate the increase.
Can I get a COI same-day for a client?＋
Yes. Many insurance agents can provide a certificate of insurance (COI) same-day, which can help you meet client requirements quickly.
Does a sole proprietor need General Liability?＋
Yes. As a sole proprietor, you are personally responsible for your business's liabilities, which makes General Liability insurance a crucial investment. Even if you don't have employees, you may still be at risk for third-party claims, and General Liability insurance can provide financial protection against those claims.
What's not covered by General Liability?＋
General Liability insurance does not cover workers' compensation claims, professional liability claims, or intentional acts. For example, if you intentionally damage a client's property, General Liability insurance will not cover the resulting claim. You may need to purchase separate policies to cover these types of risks.
Can I cancel my General Liability policy at any time?＋
Yes. You can typically cancel your General Liability policy at any time, but you may be subject to cancellation fees or penalties. Your insurance agent can help you navigate the cancellation process and ensure that you have adequate coverage in place.
Will my General Liability premium increase if I have a high-risk job?＋
Yes. If you have a high-risk job, such as working at heights or with hazardous materials, your General Liability premium may be higher. However, you can work with your insurance agent to identify strategies to mitigate those risks and lower your premium. For example, you may be able to reduce your premium by implementing safety protocols or providing training to your employees.
Can I get General Liability insurance if I have a poor claims history?＋
Yes. While a poor claims history may increase your General Liability premium, you can still get insurance. Your insurance agent can help you shop around for policies and find coverage that meets your needs and budget. You may also be able to improve your claims history over time by implementing safety protocols and reducing your risk exposure.
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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.