Covington & Slidell Independent Insurance Agents
For Louisiana residential builders, the LHBA GL Trust offers a different route to general liability coverage. It is a member-owned program run by builders, it is tied to local Home Builders Association membership, and it may sit alongside the association's workers comp fund to cover most of a builder's day-to-day liability.
Most builders in St. Tammany Parish first hear about the Trust at a chapter meeting or from another contractor. Few of them get a clear explanation of how it differs from a standard commercial policy. The differences affect what you pay, who decides on claims, and which jobs you can take. This guide covers how the Trust works, who qualifies, what it typically covers, and how local agents help builders in Covington and Slidell put it together with workers comp and builders risk.
Understanding the Louisiana Home Builders Association General Liability Trust
The LHBA GL Trust is a member-owned self-insurance program for Louisiana residential builders and contractors. It does not buy coverage from a commercial insurer. Members pool their contributions to pay liability claims. The Trust is governed by builders, and it exists to meet the specific needs of home construction in Louisiana.
The Trust operates as a separate legal entity governed by a Board of Trustees made up of builders and indemnitees. That governance setup is the main thing that separates it from a typical carrier. The people setting policy direction build houses for a living, so they understand the difference between a slab issue and an ordinary customer complaint.
Daily operations are handled by Risk Management Services, LLC, which manages underwriting and policy issuance from offices in Metairie and Baton Rouge. Builders deal with professional administrators, and the overall direction still comes from the membership.
The Trust also has standing under state law. It is a recognized entity for satisfying Louisiana statutory insurance requirements under La. R.S. 37:2156.1(F). A policy from the Trust can therefore count toward the coverage your residential license requires.
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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.
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The jump from minimum limits to 100/300/100 often costs less than riders expect, because liability is typically priced per added layer rather than doubling with the limits. Ask for quotes at two or three levels side by side before you decide.
Here's a common scenario: you misjudge a curve and clip a late-model pickup, injuring the driver. A single ambulance ride, ER visit, and follow-up imaging can eat through $15,000 quickly. Anything above your limit can become your personal responsibility, which may put your savings, wages, or home at risk.
| 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% |
Louisiana Specialized Vehicle Insurance Comparison
Bogalusa grew up around its paper mill, and many of the older homes built for mill workers sit on lower ground close to the creek and drainage channels. Plenty of these houses are on slab or low pier foundations built decades before modern elevation standards. When water has nowhere to go, these streets often feel it first.
For homeowners in these areas, the elevation of your lowest floor typically has a big effect on your premium. An elevation certificate may help, especially if your home sits higher than surrounding lots suggest. We also see buyers of older mill-area homes skip flood coverage because the lender didn't require it, which leaves a serious gap if the property sits just outside a mapped high-risk zone.
How the LHBA GL Trust Works for Contractors
Think of the Trust as a shared reserve. Each member pays a premium into the pool, and that pool covers claims, administration, and reserves. A standard carrier keeps underwriting profit for its shareholders. The Trust does not.
The Trust provides general liability coverage on an "at cost" basis, with all income declared payable to members as dividends. If the pool takes in more than it needs to pay claims and expenses, that surplus belongs to the builders who paid in. Dividends are never guaranteed, because they depend on claim experience. Still, the incentive points toward the members.
The LHBA describes the arrangement as a "by builders, for builders" model that aligns coverage and claims handling with industry realities and not with corporate profit motives. That has practical effects. When commercial carriers pull back from Louisiana construction after a heavy storm year or a run of construction defect suits, a builder-governed pool typically has more reason to stay put. The board members work in the same market you do.
This model has a tradeoff. Members share risk, so the pool's results depend on the whole membership's claim history. Careless contractors can affect everyone, which is one reason the Trust uses eligibility rules and underwriting standards.
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
| Coverage Area | State Minimum | Common Higher Option | Stronger Option |
|---|---|---|---|
| Injury, one person | $15,000 | $50,000 | $100,000 |
| Injury, per accident | $30,000 | $100,000 | $300,000 |
| Property damage | $25,000 | $50,000 | $100,000 |
| Who it fits | Legal compliance only | Riders with modest assets | Homeowners, families, higher earners |
Here's a common scenario: you misjudge a curve and clip a late-model pickup, injuring the driver. A single ambulance ride, ER visit, and follow-up imaging can eat through $15,000 quickly. Anything above your limit can become your personal responsibility, which may put your savings, wages, or home at risk.
Minimum Coverage vs. Actual Protection Needs
The jump from minimum limits to 100/300/100 often costs less than riders expect, because liability is typically priced per added layer rather than doubling with the limits. Ask for quotes at two or three levels side by side before you decide.
Who Can Join the LHBA GL Trust?
Eligibility comes down to two things: association membership and the type of work you do.
You first need to be an active member of a local Home Builders Association chapter in Louisiana. For contractors on the Northshore, that means joining your local chapter before you apply. The Home Builders Association of Greater New Orleans lists builder resources for contractors across the region. Coverage follows membership, so a lapsed membership can cause problems with your policy.
Your business also needs to be mainly residential. The Trust's rules spell this out:
- Commercial work limit: Commercial jobs are permitted only if they do not exceed 30% of your operations based on a 5-year average.
- Building size limit: Coverage is restricted to buildings no taller than three stories or larger than 20,000 square feet in total area.
- Licensing: Residential builders in Louisiana are generally expected to keep the general liability coverage their license requires.
A common mistake is a builder who drifts into commercial jobs, such as a small office remodel here and a retail buildout there, without tracking the mix. Because the 30% figure is a five-year average, one large commercial year can affect your numbers for a long time. Watch it before it becomes a problem.
The jump from minimum limits to 100/300/100 often costs less than riders expect, because liability is typically priced per added layer rather than doubling with the limits. Ask for quotes at two or three levels side by side before you decide.
One tip: keep a dated list of serial numbers and photos of your tools. Claims with documentation move much faster than claims built on memory.
| Feature | Commercial Property | Inland Marine (Tool Floater) |
|---|---|---|
| Where it applies | Your fixed shop location | Jobsites, truck, in transit |
| Typical items | Stationary machines, inventory, building | Portable saws, nailers, hand tools |
| Theft from vehicle | Usually not covered | Often covered, with conditions |
| Fire or storm at shop | Typically covered | May be covered if tools are there |
| Who needs it | Carpenters with a shop | Nearly every working carpenter |
How Deductible Types Compare
Comparison of NFIP vs. Excess Flood Coverage
| Feature | NFIP Policy | Excess Flood Policy |
|---|---|---|
| Building limit | Up to $250,000 | Typically adds coverage above $250,000 |
| Who issues it | Federal program, sold through agents | Private carriers |
| Waiting period | Generally 30 days | May be shorter, varies by carrier |
| Additional living expenses | Not included | May be included, depending on policy |
| Basement coverage | Very limited | May be broader on some policies |
| CRS premium credit | Applies in Mandeville | Typically does not apply |
| Best fit for | Base layer for most homes | Higher-value or lakefront homes |
Classes of Business GUARD Typically Writes
GUARD's appetite generally leans toward small to mid-sized businesses with predictable risk. Eligibility depends on underwriting, location, and claims history, but these Louisiana business types often fit:
- Retail: Boutiques, gift shops, hardware stores, and specialty retailers along Columbia Street or in Slidell's shopping centers.
- Professional services: Accounting firms, insurance offices, consultants, and real estate offices.
- Artisan contractors: Electricians, plumbers, HVAC technicians, painters, and carpenters.
- Restaurants and food service: Cafes, bakeries, and many full-service restaurants, subject to cooking and liquor exposure review.
- Office-based businesses: Medical offices, dental practices, and similar low-hazard operations.
Contractors deserve special mention. In June 2026, GUARD rolled out a
Contractors General Liability and Inland Marine solution for artisan contractors working at third-party job sites. Inland marine matters more than most tradespeople realize. A $6,000 set of tools stolen from a truck parked in a Covington subdivision usually isn't covered by a basic liability policy at all.
Coverage Built Specifically for Residential Construction
Standard commercial GL policies are written for a broad range of businesses, and many of them treat residential construction as a risk to limit. Carriers often add exclusions for tract homes, subsidence, or residential work in general. Some of these get buried in endorsements that builders never read until a claim is denied.
Coverage under the Trust is designed around home building, so it may include protections for risks a standard policy excludes or restricts. One central piece is Products and Completed Operations liability, which applies to damage that happens after a project is finished. For home builders this coverage is essential. Many residential claims come in months or years after closing, such as water intrusion that damages the homeowner's property or a failed component that causes injury.
The Trust's coverage has limits. It excludes warranties required by the New Home Warranty Act, so your statutory warranty obligations need separate handling. General liability is not a warranty program, and builders who mix the two up tend to find out at a bad time.
Comparing Trust Coverage to Standard Market Policies
| Feature | LHBA GL Trust | Standard Commercial Carrier |
|---|---|---|
| Residential exclusions | Built for residential work; typically fewer residential carve-outs | May exclude or restrict residential, tract, or condo work |
| Who governs | Board of builders and indemnitees | Corporate management and shareholders |
| Profit/surplus | Coverage at cost; income payable to members as dividends | Retained by the carrier |
| Claim handling | Third-party administrator familiar with home building | General adjusters across many industries |
| Eligibility | HBA membership, mostly residential work | Open market, subject to underwriting |
| Completed operations | Included | Varies; may be limited by endorsement |
Coverage details can change with each policy year, so read your actual policy documents and do not rely on summaries alone.
General liability covers physical harm: fires, shocks, and property damage from your work. Professional liability, sometimes called errors and omissions, may cover financial loss from design mistakes or bad advice, such as an undersized service you specified on a load calculation. Electricians who do design-build work, panel sizing for solar, or consulting often need both, because a general liability policy typically will not respond to a pure financial loss.
The most common mistake is buying limits sized for the center you opened, not the center you run now. Enrollment grows, a second van shows up, an after-school program starts, and the policy stays the same. A yearly review against your actual operations catches that drift before a claim exposes it.
General Liability vs. Workers Compensation
The NFIP's biggest strength is stability. It isn't going to pull out of Louisiana, and its policies typically transfer to a new buyer when you sell, which can help with resale. Private policies may offer more coverage for the money, especially for homes that would exceed federal limits or families who would need hotel costs paid during repairs.
One common mistake: buying building coverage and skipping contents. If your furniture, appliances, and clothes are ruined, building coverage alone won't replace them. Ask for both.
How It Pairs with Workers Compensation and Builders Risk
A GL policy covers injury to third parties and damage to other people's property. It does not cover your own crew or the house while you are building it. A complete package for a Louisiana residential builder usually has three main parts.
Workers compensation covers injuries to your employees. The LHBA also sponsors a self-insured workers comp fund, and it explains how a self-insured fund compares with a traditional carrier for Louisiana builders. Pairing the GL Trust with the workers comp fund keeps both programs under association-aligned governance. That can make audits and renewals easier because both programs understand your payroll classes and job types.
Builders risk covers the structure during construction against perils such as fire, wind, theft, and vandalism. On the Northshore, wind and named storm terms deserve close attention, because deductibles and exclusions vary widely between carriers.
The gaps between these policies are where builders get hurt. Subcontractors without their own coverage can end up on your workers comp audit. A tool trailer stolen from the jobsite may fall under inland marine coverage, not builders risk. Commercial auto is a separate policy as well. Requirements can also change: the Licensing Board has published insurance changes pursuant to Act 757 of the 2026 legislative session, so check how they apply to your license.
The jump from minimum limits to 100/300/100 often costs less than riders expect, because liability is typically priced per added layer rather than doubling with the limits. Ask for quotes at two or three levels side by side before you decide.
One tip: keep a dated list of serial numbers and photos of your tools. Claims with documentation move much faster than claims built on memory.
| Feature | Commercial Property | Inland Marine (Tool Floater) |
|---|---|---|
| Where it applies | Your fixed shop location | Jobsites, truck, in transit |
| Typical items | Stationary machines, inventory, building | Portable saws, nailers, hand tools |
| Theft from vehicle | Usually not covered | Often covered, with conditions |
| Fire or storm at shop | Typically covered | May be covered if tools are there |
| Who needs it | Carpenters with a shop | Nearly every working carpenter |
The jump from minimum limits to 100/300/100 often costs less than riders expect, because liability is typically priced per added layer rather than doubling with the limits. Ask for quotes at two or three levels side by side before you decide.
Common Questions About LHBA Insurance
Do I have to be a member to get coverage? Yes. You need to be an active member of a local Louisiana Home Builders Association chapter, and you need to keep that membership in good standing for the length of your coverage.
What does the trust cover that others don't? It is built for residential construction, so it may avoid some of the residential exclusions found in standard commercial policies. It includes completed operations coverage for damage that happens after a project is finished.
Does the Trust meet Louisiana licensing requirements? The Trust is recognized under La. R.S. 37:2156.1(F). State law requires licensed residential builders to carry at least $500,000 in general liability coverage.
Can I do commercial jobs and still qualify? Some. Commercial work is allowed as long as it stays at or below 30% of your operations on a five-year average.
Will I get a dividend every year? Not necessarily. All income is payable to members as dividends, but the amount depends on the Trust's claims and expenses.
Does it cover my New Home Warranty obligations? No. Warranties required by the New Home Warranty Act are excluded, so plan for them separately.
General liability covers physical harm: fires, shocks, and property damage from your work. Professional liability, sometimes called errors and omissions, may cover financial loss from design mistakes or bad advice, such as an undersized service you specified on a load calculation. Electricians who do design-build work, panel sizing for solar, or consulting often need both, because a general liability policy typically will not respond to a pure financial loss.
The most common mistake is buying limits sized for the center you opened, not the center you run now. Enrollment grows, a second van shows up, an after-school program starts, and the policy stays the same. A yearly review against your actual operations catches that drift before a claim exposes it.
General Liability vs. Workers Compensation
The NFIP's biggest strength is stability. It isn't going to pull out of Louisiana, and its policies typically transfer to a new buyer when you sell, which can help with resale. Private policies may offer more coverage for the money, especially for homes that would exceed federal limits or families who would need hotel costs paid during repairs.
One common mistake: buying building coverage and skipping contents. If your furniture, appliances, and clothes are ruined, building coverage alone won't replace them. Ask for both.
Making the Right Choice for Your Louisiana Business
The LHBA GL Trust may suit many residential builders. It is governed by builders, provides coverage at cost, and is designed for home construction. It still has rules. You need active membership, your work has to stay mostly residential, there are limits on building size, and you need a plan for warranty obligations and for the policies GL does not replace.
An independent agency can look at the Trust alongside other commercial options and show you how each one would handle a claim you could realistically face. Since 1910, Aubert Insurance Agency has helped Louisiana families and business owners understand their coverage, including exclusions, before signing. For builders in Covington, Slidell, and across St. Tammany Parish, that means comparing your GL, workers comp, and builders risk options in one place.
Ready to see how your current coverage compares? Start a Quote with Aubert Insurance Agency, and we can help you build a protection package that fits how you build.
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.
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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.
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Protection when your advice or professional work is challenged. A staple of any commercial package for a service business.
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614 E. Boston St., Covington, LA 70433. (985) 892-3101
58418 Tyler Drive, Slidell, LA 70461 · (985) 641-0520
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614 E. Boston St., Covington, LA 70433
58418 Tyler Drive, Slidell, LA 70461
