Louisiana General Liability Insurance

Covington & Slidell Independent Insurance Agents

Louisiana general liability insurance protects contractors and employers when a third party claims bodily injury, property damage, or advertising injury tied to their work. Residential contractors may also need at least $500,000 in coverage starting August 1, 2026, with the state licensing board listed as certificate holder and no excluded licensed activities.


That answer covers the basics, but the details are where contractors get hurt. A framer in Covington loses a subdivision job because his certificate shows the wrong holder. A remodeler in Slidell finds out after a claim that his policy quietly excluded townhome work. These aren't rare stories, and both were avoidable with a careful read of the policy before signing.


The rules also shifted this year. Louisiana now ties a specific liability minimum to residential licensing, and the licensing board can act on policies it considers deficient. If you build, remodel, remediate mold, or run any business where customers and the public come onto your jobsite or premises, the next few minutes will show you what your policy should do, what it often doesn't, and which questions to bring to your agent.

Understanding Louisiana General Liability Insurance for Business Owners

Commercial general liability, usually shortened to CGL, is the policy that responds when someone outside your company says you hurt them or damaged their property. It does not cover your own employees' injuries (that's workers' compensation), your own tools and equipment (that's inland marine), or your vehicles (that's commercial auto). Many business owners assume one policy handles everything, and that assumption causes most of the coverage gaps I see.


For Louisiana business owners, CGL is rarely optional in practice. General contractors require it from subs, commercial landlords require it in leases, and parish and municipal permits often ask for proof. For residential contractors, it is now a licensing condition with a firm dollar floor.


The policy itself is a legal contract. The declarations page tells you limits and premium, but the endorsements stapled to the back tell you what has been taken away. Reading only the first page is the most common mistake a new contractor makes, and it's the one that hurts most when a claim arrives.

By: Kyle Beerbohm
President

Aubert Insurance Agency is a local, independent agency, licensed to serve individuals and businesses across Louisiana, Mississippi, Florida and Texas.

We serve clients from our offices in Covington and Slidell and throughout St. Tammany Parish — working with dozens of carriers and wholesale markets to help homeowners, drivers, contractors, restaurant owners, property investors, auto shops, professional practices and many other personal and commercial clients find coverage that fits.

Licensed in Louisiana #3661 · Mississippi #15039075 · Florida #W0772236 · Texas #2381820

Understanding the Named Storm Deductible

A named storm deductible works differently than the flat $500 or $1,000 deductible on your regular claims. In Louisiana, it's often calculated as 2% to 5% of the insured value of your personal property. On a policy with $40,000 in contents coverage, a 5% deductible means the first $2,000 of a hurricane loss is yours.


There's some good news in state law. Louisiana's one-deductible-per-year rule (La. R.S. 22:1337) means you generally pay the named storm deductible only once per calendar year, even if two storms hit your rental. Ask your agent to show you that deductible in dollars, not just a percentage, so you can set aside the right amount in an emergency fund.

What CGL Covers for Louisiana Contractors and Employers

A standard CGL form typically includes three main coverage parts for businesses in Covington, Slidell, and throughout the state:


  • Bodily injury: A homeowner trips over an extension cord at your jobsite and breaks a wrist. Medical bills, lost wages, and legal defense may be covered.
  • Property damage: Your plumber's torch scorches a client's cabinets, or a ladder falls through a neighbor's windshield.
  • Personal and advertising injury: Claims of libel, slander, or using someone else's copyrighted photo in your marketing.


Most policies also include products-completed operations coverage, which matters a great deal for contractors. If a deck you finished eight months ago collapses at a crawfish boil, the claim falls under completed operations, not your ongoing work. Defense costs are typically paid in addition to limits on standard forms, which is valuable when a lawsuit drags on.

Standard Coverage vs. Louisiana Specific Risks

A standard form was written for the whole country, and Louisiana has its own pressures. Our climate brings heavy moisture, which makes mold a frequent claim theme, and many CGL policies exclude mold or fungi outright. Storm-driven rebuilding after hurricanes draws contractors into roofing and water damage work, where some carriers restrict coverage or price it steeply.


Louisiana also has the New Home Warranty Act, which sets exclusive remedy periods for construction defects: 1 year for workmanship and materials, 2 years for major systems, and 5 years for major structural defects. Builders should understand that warranty obligations and liability coverage are different things. A CGL policy may respond to resulting property damage, but it typically won't pay to fix your own faulty work.

With no lender to satisfy, the decision is yours, and so is the entire loss. A total rebuild in this parish runs well into six figures.

Homeowners who own outright

Your lender requires coverage at least equal to the loan, and will buy a policy on your behalf at your expense if yours lapses.

Homeowners with a mortgage

Certificate and Additional Insured Requirements

A certificate of insurance, usually on an ACORD 25 form, is a one-page snapshot proving you carry coverage. It doesn't change your policy; it just reports it. For licensing purposes, the Louisiana State Licensing Board for Contractors must appear as the official certificate holder on all ACORD 25 forms you submit to the board.


The financial floor matters too. Effective August 1, 2026, Louisiana law requires residential construction, mold remediation, and home improvement contractors to maintain at least $500,000 in general liability insurance under La. R.S. 37:2156.1. One thing to keep in mind: the board can suspend a license if your policy excludes any of the activities you're licensed to perform. A roofer whose policy excludes roofing is, in the board's eyes, uninsured for his trade.


Request certificates early. If a GC needs one before Monday's pour, calling your agent Friday afternoon is cutting it close.

Why Your Clients Request Additional Insured Status

Being named as a certificate holder just means someone receives proof. Being named as an additional insured means your policy may actually defend and pay for that party if they're sued because of your work. General contractors, developers, and property managers ask for this because they get pulled into lawsuits over subcontractor mistakes constantly.


Read the contract language closely. Some agreements require "primary and noncontributory" wording or completed operations coverage for the additional insured, which needs specific endorsements. Many contractors sign a subcontract agreeing to these terms without checking whether their policy includes them. If a claim comes in and the endorsement isn't there, you may be in breach of contract on top of facing the lawsuit.

The roof

Age, material and shape drive the wind rate more than any other factor. A fortified roof designation opens markets that would otherwise decline the house.

Residential Construction Exclusions to Watch

This is the section that keeps residential contractors up at night, or should. Many policies written in Louisiana may contain exclusions for residential work or multi-family projects, and contractors need to verify these with their agent before taking a job. Many standard carriers still include "Residential Tract" or "Multi-family" exclusions, which may require a "buy back" endorsement if you work on subdivisions or townhomes.


Watch for these on your endorsement schedule:


  1. Tract or subdivision exclusions: Removes coverage when you work on a set number of homes in one development.
  2. Multi-family or condo exclusions: Common for townhomes and apartments, often because of long-tail defect claims.
  3. Action-over exclusions: These remain a significant risk in 2026, excluding claims where your injured employee sues a third party who then seeks indemnity from you.
  4. Mold, EIFS, and roofing exclusions: Narrow but expensive when triggered.


Some builders consider the LHBA General Liability Trust as an alternative. It is recognized under La. R.S. 22:46(13)(d)(i) as a valid way to meet state liability requirements, and it operates as a self-insurance fund governed by a board of active Louisiana contractors from across the state's regions. Whether the trust or a commercial policy fits better depends on your work mix, so compare both side by side.

Feature Basic Coverage Extended Coverage
Property valuation Actual cash value (depreciated) Replacement cost (new item price)
Liability limit $100,000 $300,000 to $500,000
Valuables (jewelry, guns, art) Low sublimits, often $1,500 or less Scheduled items at appraised value
Water backup from drains Usually excluded May be added by endorsement
Loss of use Limited dollar cap Higher cap or longer timeframe
Flood Not covered Still not covered (needs NFIP or private flood)
Named storm deductible Percentage applies Percentage applies, sometimes lower options

How coverage choices change a Louisiana homeowners premium. Structure only — your rate depends on your property. [CONFIRM figures]

How coverage choices change a Louisiana homeowners premium. Structure only — your rate depends on your property. [CONFIRM figures]

Scenario Dwelling limit All-other-perils deductible Named-storm deductible
Newer build, inland St. Tammany $350,000 $1,000 2%
Newer build, higher wind zone $350,000 $1,000 5%
Older home, updated roof $275,000 $2,500 2%
Older home, original roof $275,000 $2,500 5%
Fortified roof designation $400,000 $1,000 2%
Rebuilt after a prior claim $400,000 $2,500 5%
Bundled with auto $350,000 $1,000 2%

Comparing General Liability and Professional Liability

Contractors who design, consult, or manage projects often ask whether CGL is enough. Usually it isn't, because general liability focuses on physical harm while professional liability covers financial loss from errors in advice or design. A design-build firm that specifies the wrong beam size has a professional exposure, even if nobody gets hurt.

Feature General Liability Professional Liability
Main trigger Injury or property damage Mistakes, negligence, bad advice
Typical claimant Visitors, neighbors, clients Clients who lost money
Example claim Customer slips on wet tile Faulty design causes delays
Who usually needs it Nearly every contractor and employer Designers, engineers, consultants, project managers
Covers your own faulty work? Typically no Typically no repair costs, but may cover resulting financial loss

A general handyman probably needs only CGL. A builder who draws plans for clients, or an employer who gives paid consulting advice, may need both. Ask your agent to review your service descriptions, because how you describe your work on an application shapes what gets covered.

The roof

Age, material and shape drive the wind rate more than any other factor. A fortified roof designation opens markets that would otherwise decline the house.

Common Questions About Louisiana Business Insurance

Is general liability insurance required in Louisiana? State law doesn't require it for every business, but residential and home improvement contractors must carry at least $500,000 starting August 1, 2026. Clients, landlords, and GCs often require it even when the state does not.


What's the difference between a certificate holder and an additional insured? A certificate holder just receives proof of coverage. An additional insured may actually be protected by your policy if sued over your work.


Does my CGL policy cover my employees if they get hurt? No. Employee injuries fall under workers' compensation, and an action-over exclusion may also limit related third-party claims.


Can I use the LHBA trust instead of a regular insurance policy? Yes, Louisiana law recognizes it as a valid alternative for meeting state liability requirements. Compare its terms against commercial options before deciding.


Why would my license get suspended over insurance? The licensing board may suspend a license if your policy excludes any activity you're licensed to perform. Keep your policy aligned with your license classifications.


Will CGL pay to redo work I messed up? Typically not. It may cover damage your faulty work causes to other property, but rarely the cost of fixing the work itself.

Before You Buy a Policy

A good CGL policy isn't the one with the lowest premium; it's the one that still responds when a homeowner's attorney sends a demand letter two years after closing. Before you sign anything, line up your actual work against the exclusions, confirm your limits meet the new $500,000 residential minimum, check that the licensing board appears correctly on your certificate, and make sure any additional insured promises in your contracts are backed by real endorsements.


That review is exactly where an independent agency earns its keep. Aubert Insurance Agency has served the Covington and Slidell area since 1910, and because we compare options from multiple carriers, we can put a residential tract buyback, a stand-alone CGL policy, and other choices next to each other so you understand the tradeoffs instead of guessing. We'll walk through the endorsements with you in plain language, because a contract you don't understand isn't really protecting you.


Ready to find out what your current coverage is missing? Start a Quote today, and we'll help you build a policy that fits the way you actually work in St. Tammany Parish and across Louisiana.

About the Author

Kyle Beerbohm

President

We've been independent since 1910, and four generations of local ownership have kept us that way. We're one of the oldest agencies in St. Tammany Parish and the fourth oldest business in the City of Covington. I treat that history as a responsibility rather than a plaque on the wall. My job is to keep us answering to the families and business owners who walk through our doors, and to keep serving this parish for another hundred years.

Louisiana Insurance Questions, Answered

Questions clients ask us

Short, plain answers to what people ask before they call. Anything else, phone the office and ask.

  • What does an independent insurance agency do?

    We represent you, not one insurance company. We gather your information once, then compare coverage and price across the carriers we hold contracts with. You get choices, and one agent handles the paperwork.

  • Which types of insurance does Aubert offer?

    We write 13 personal lines, including home, auto, flood, boat, and life. We write 15 commercial lines, including business owners policies, general liability, workers compensation, and commercial property.

  • Do I need flood insurance in St. Tammany Parish?

    Your homeowners policy excludes flood, and much of the Northshore has flooded outside mapped high-risk zones. Lenders require it inside those zones. We check your flood zone and quote NFIP and private options.

  • Which states are you licensed in?

    We hold licenses in Louisiana, Mississippi, Florida, and Texas. License numbers appear in the footer of every page on this site.

  • How do you find me a competitive rate?

    We take your details once and market them to the carriers and wholesale brokers that fit your risk. We compare the offers, explain the differences in coverage, and recommend the strongest fit.

  • How do I file a claim or request a certificate?

    Call the office or use the Client Center on this site. We report the claim, follow the adjuster, and send certificates of insurance to whoever needs them.

Personal Insurance in Louisiana

Coverage for your home, your vehicles, and your family

Thirteen personal lines sit under one roof. Start with the coverage you need most, and we price it across our markets.

Home Insurance

Protect your house, its contents, and your liability with a policy priced across many Louisiana homeowners carriers.

Car Insurance

Cover every driver and vehicle in your household, and compare limits and deductibles side by side before you buy.

Flood Insurance

Standard home policies exclude flood. We write NFIP and private flood coverage for St. Tammany Parish properties.

Umbrella Insurance

Add a layer of liability above your home and auto limits, so one serious claim never reaches your savings.



Boat Insurance

Cover your hull, motor, trailer, and liability on the lake, the river, and the Gulf, wherever you launch.



Life Insurance

Replace your income for the people who depend on it, with term and permanent options we quote across carriers.

Business Insurance in Louisiana

Coverage for the business you built

Fifteen commercial lines, written for the payrolls, fleets, and buildings that Louisiana carriers ask hard questions about.

Business Insurance by Industry

We protect hundreds of businesses of all shapes and sizes

We know the exposures, the contract language, and the markets that write these trades on the Northshore.

General Contractors

Builders risk, general liability, and comp for homebuilders and remodelers working across St. Tammany Parish.

Plumber Insurance

Plumbers, electricians, roofers, and painters get liability, tools, and auto coverage that satisfies job requirements.

Restaurants

Property, liquor liability, spoilage, and comp for kitchens, bars, and cafés, including Louisiana association programs.

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Insurance Tips & Local News

Insurance tips for Louisiana homes and businesses

Practical reading on flood zones, hurricane deductibles, and the coverage questions local business owners raise.

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