Louisiana Drywall Contractor Insurance

Louisiana Drywall Contractor Insurance Overview

Drywall insurance in Louisiana protects your business against the trade's most common risks: worker falls, mold allegations, damage to a client's property, and dust complaints. It also keeps you compliant with state licensing rules, which now require residential contractors to carry specific minimum limits and maintain continuous coverage.

The licensing piece changed significantly this year. Residential contractors, including drywall and mold remediation specialists, must carry at least $500,000 in general liability insurance as of August 1, 2026. The board also gained expanded authority to immediately suspend or revoke a license when coverage lapses or no longer matches your licensed scope.

Paperwork matters more now too. Certificates of insurance must name the LSLBC as certificate holder and cannot exclude your licensed work. That last point catches people. A policy with a broad mold or EIFS exclusion that touches your actual scope may create a licensing problem as well as a claims problem.

On cost, solo drywall operators in Louisiana typically pay between $700 and $1,300 a year for general liability, depending on payroll, claims history, and the type of work.

Managing Risks of Stilts and Scaffold Injuries

Stilts are efficient and they're also one of the fastest ways to end up with a workers' comp claim. A taper on 24-inch stilts who catches a cord or a scrap of corner bead falls from a height that easily causes wrist fractures, knee injuries, and head trauma. Baker scaffolds and rolling platforms add their own risks: unlocked casters, missing guardrails, and planks laid across buckets when someone's in a hurry.

Workers' compensation pays medical bills and lost wages for your employees, regardless of fault. General liability does not cover your own workers. Where people get burned is when a homeowner, another trade, or a visiting family member trips over your scaffold. That third-party injury falls under general liability, and some carriers may add exclusions or higher rates for scaffold work above certain heights, so read the classification carefully.

A few habits that help with both safety and claims defense:

• Floor clearing before stilt work: Document it with a quick photo each morning.
• Locked casters and guardrails: Make them non-negotiable on rolling scaffolds.
• Written stilt policy: Specify who is trained and allowed to use them.
• Incident reporting within 24 hours: Late reports are a common reason claims get contested.

Water-Damaged Board and Mold Allegations

Protecting Against Dust Claims in Occupied Homes

Remodels in occupied homes generate a distinct type of complaint. Sanding joint compound releases fine dust that drifts through HVAC returns, settles on electronics, and works into upholstery. Homeowners file claims for professional cleaning, ruined furniture, replaced air handlers, and sometimes respiratory complaints for children or elderly residents.

Many of these disputes come down to proof. Contractors without pre-work photo documentation of existing finishes are about 70% more likely to lose nuisance dust disputes in occupied residential settings. If you can't show the TV already had a scratch or the rug was already stained, you're likely paying for it.

Practical steps that tend to reduce both claims and arguments:

1. Photograph every room adjacent to the work area before starting, including furniture and floors.
2. Seal HVAC returns and use zip walls or plastic barriers.
3. Use dust-control sanders with vacuum attachments where practical.
4. Put cleanup expectations in your written contract.

General liability may cover property damage from dust, but small claims often fall under your deductible. Good documentation is cheaper than either.

The Complexity of Labor-Only Subcontractors

Plenty of Louisiana drywall outfits run lean: an owner, a pickup, and a rotating group of hangers and finishers paid by the board or by the job. That model is legal, but the paperwork has tightened. Subcontractors in the Furnishing Labor Only classification must provide proof of both workers' compensation and liability insurance to the licensing board.

The bigger shift: under House Bill 185, labor-only subs who spend a substantial portion of their time doing manual labor are legally viewed as employees for workers' comp purposes as of August 1, 2026. If your sub's guy falls off a scaffold and the sub has no valid coverage, the claim may land on your policy. At audit, your carrier may also charge premium on payroll paid to uninsured subs.

Collect a current certificate from every sub before they start, set calendar reminders for expiration dates, and keep copies in one file.

Workers Compensation vs General Liability

These two policies get confused constantly. Workers' compensation covers injuries to people working for you, including uninsured subs who may be treated as your employees. General liability covers injuries to other people and damage to their property, like a homeowner who trips over a mud pan or a hardwood floor gouged by a scaffold leg. You typically need both, and one doesn't fill the other's gaps.

Comparing Coverage Needs for Louisiana Drywallers

Here's how the main policies stack up for a typical drywall operation in St. Tammany Parish.

For most drywallers, professional liability is the least pressing of these. The real value sits in a properly classified GL policy and workers' comp that actually reflects your crew setup.

Common Questions About Drywall Insurance

Do I need insurance if I work alone? Yes. Louisiana residential contractors must carry general liability to hold a license, and the minimum is now $500,000. Workers' comp rules depend on whether you have employees or use subs.

Does general liability cover mold? Often not fully. Many policies exclude mold, though some carriers may offer limited coverage through an add-on.

What happens if my insurance lapses? The licensing board can suspend or revoke your license immediately. Even a short gap can stop you from working.

Are my subcontractors covered under my policy? Not automatically. If they don't have their own valid workers' comp, their injured workers may become your claim.

Can I lower my premium? Possibly. Louisiana's insurance commissioner has said that "policyholders must shop around to take advantage of these rate decreases."

What should my certificate of insurance show? It must name the LSLBC as certificate holder and cannot include exclusions for your licensed work.

Your Next Steps for Local Coverage

The 2026 changes raised the stakes for drywall contractors. Higher GL minimums, stricter certificate rules, and new treatment of labor-only subs mean an old policy may no longer match your work or your license. The board put it plainly: "Your insurance policy needs to match the work you actually perform."

Start with a review. Pull your current policy and check the mold language, your class codes, your scaffold or height restrictions, and the certificates you have on file for every sub. Note anything that looks like it might exclude part of your licensed scope.

Aubert Insurance Agency has served contractors in Covington and Slidell since 1910. As an independent agency, we compare options from multiple carriers and explain what each policy covers and excludes, so you understand the contract before you sign. If your coverage needs a second look before your next job, we can help.