Louisiana small business owners should consider insurance to protect their bottom line from the costs incurred due to accidents and injuries. Examples include employee injury, third-party injury and property damage, auto accidents and damage to business assets. Without it, a single incident can result in economic losses and significant expenses.
The US Bureau of Labor Statistics reported that Louisiana had 31,300 work related injuries in 2021, with 23,700 of those injuries occurring in private sector companies. Employees missing work because of an injury could negatively impact your business not to mention your employees’ wellbeing.
Louisiana state law mandates that all companies maintain a workers’ compensation policy. Employers in Louisiana are required by state law to carry workers' compensation insurance if they have one full or part time employee being paid at least $3,000 a year. Of course, there are some exceptions to the rule, you can find out more at Louisiana Workforce Commission, Department of Labor. Owners and officers who hold at least 10 percent ownership of a company can reject being covered by workers compensation insurance by filing an exemption form. They must provide written notice of their decision to opt-out of the insurance in writing to the insurer.
Types of Commercial Business Insurance Offered in Louisiana
General Liability Insurance
This policy is the most common type of commercial insurance, and many Louisiana businesses have it. It covers liability arising from third-party bodily and property damage, personal injury, and advertising injury.
General liability insurance quotes usually include coverage for the following:
- Bodily injury and property damage liability
- Personal and advertising injury
- Medical payments
- Products-completed operations
- Damage to premises rented to you
General liability insurance is sometimes paired with property insurance, but it is available as stand-alone coverage. As a certified contractor or small business owner, you will need liability insurance if you injure someone or damage their property and face a lawsuit. An accident might lead to litigation that you cannot handle. One way to reduce the chance that your business will have to hire its own defense attorney is to purchase general liability insurance at an amount that matches your level of exposure. Some clients may require your company to have a certain amount of liability insurance in order to do business.
All businesses in Louisiana need liability coverage, some examples include:
- Architecture & Engineering
- Commercial Maintenance
- Home Services
Commercial Auto Insurance
Commercial auto insurance is known as auto liability and physical damage protection for owned vehicles, including automobiles, trucks, and vans used commercially. The coverage required for commercially titled vehicles can differ from that used for personal vehicles. Your personal auto policy may not cover claims if they are titled to a business entity or used for business purposes.
Obtaining business auto insurance that suits your needs will cover the liability exposures from operating a vehicle` on public road. A commercial auto insurance quote typically contains the following:
- Bodily Injury Liability
- Property Damage Liability
- Medical Payments
- Uninsured Motorist
- Hired Auto
- Non-Owned Coverage
- Any Auto
Workers’ compensation insurance
Workers' compensation insurance covers costs associated with workplace injuries and illnesses. This indemnification is necessary for every state for companies employing workers.
Small business owners typically need a company insurance policy as soon as they hire their first employee (or an agreed-upon total number of employees).
Even without a legal requirement, this policy can prevent employer lawsuits and employee medical costs associated with workplace injuries, such as a fall in the office, an injury caused by tools or machinery, or an occupational illness. If you are physically injured because of your workplace or an employee sues you because you failed to prevent an accident, you can fulfill workers comp requirements.
If your company doesn't carry Workers' Compensation, you will be responsible for any medical costs and legal fees that it incurs. And most states have strict penalties for noncompliance.
Business Owners Policy
A BOP combines property and liability coverage into a single policy that's organized, easy to manage, and designed for small to medium-sized businesses that rent out or own commercial real estates, such as a storefront, warehouse, or office.
Most small business offices need general liability insurance and commercial property insurance. In addition, typical customer contracts require this protection.
A BOP can be a sensible bet for businesses that function directly with customers and possess high-value business assets. This policy guards business from loss caused by customer injuries and incidents like these, such as fires and burglaries. A BOP will typically cover the following:
- Third-party bodily injury
- Third-party property damage
- Product liability
- Advertising injuries
- Business property damage
Professional Liability Insurance
Louisiana businesses that provide professional services may want to look into this coverage. It protects against lawsuits claiming professional negligence, both actual and alleged, and can cover fees for defense costs. It is also known as errors and omissions insurance (E&O).
Professional liability insurance protects business professionals, such as attorneys, consultants, and accountants, from accusations of negligence or misconduct about their services. This is also known as errors and omissions (E&O) insurance.
Advisors who provide advice often need professional liability insurance as their services can have unintended effects that may affect their clients' financial security or integrity. These kinds of damage are usually excluded from standard policies. For example, a client claims that an accountant filed their taxes inaccurately and incurred a lot of money. An accountant’s professional liability insurance policy might cover legal and settlement costs.
Professional liability policies are often written on a claims-made basis, which means that the policy only covers claims made while in force. Retroactive dates may be added to cover incidents before the policy becomes effective.
Liability Insurance coverage can safeguard your company from claims associated with past and present jobs, regardless of where they were performed.
This insurance policy protects against security breaches and cybercrimes since it covers costs associated with third-party investigative companies, data recovery, and legal costs. Companies that handle customer data, like credit card information, typically require this coverage.
Cyberattacks and data breaches are expensive and often leave small businesses vulnerable. Small businesses with poor cyber security are more attractive targets for attacks on their financial security. An attack on your business can't just cause problems—it can also ruin your business. In addition, 60% of all small companies go out of business after an attack.
Cyber insurance can help your business finish its financial losses in a cyberattack. It can also protect you with credit monitoring, lawyer fees, and fines.
This insurance coverage is also called cybersecurity insurance or cyber risk insurance.
Louisiana Small Business Insurance Requirements
The statutes in Louisiana correspond to the business insurance policies you require. In Louisiana, these laws range from Baton Rouge to New Orleans.
Workers' compensation insurance
Louisiana requires employers to carry workers' compensation or provide proof of self-insurance. Any full- or part-time, including seasonal or minor employees, must be covered.
Worker's compensation provides medical benefits for work-related injuries and illnesses. The program also provides disability benefits to injured Louisiana workers.
Commercial auto insurance
All privately owned cars doing business in Louisiana must take out commercial auto insurance. This policy covers the cost of workplace auto accidents. Louisiana has minimum requirements for automobile liability insurance that are:
- $15,000 bodily injury liability per person
- $30,000 bodily injury liability per accident
- $25,000 property damage liability
Trucking companies might need more insurance to meet regulations. Though it isn't required, personally owned vehicles of employees, if utilized for business purposes, should be covered Employers Non-Owned Auto liability (EHNOA) and if your business regularly rents vehicles short term, then you may want to consider Hired Auto Liability coverage which can be added to your business auto policy. Both of these coverages extend the business’s auto liability to employee owned vehicle accidents and hired auto accidents, once the primary limits (employee’s auto liability and rental Car Company’s auto liability) are exhausted.
Cost of Business Insurance in Louisiana
The median annual cost of small business insurance in Louisiana is around $55. Insurance prices will vary based on certain factors, such as:
Your industry’s common risk factors - Businesses with a greater likelihood of damage or injuries usually get more expensive insurance coverage. Businesses in Louisiana are most frequently covered for $79 per month by insurers. Fashion design companies pay about $15 a month.
Your coverage types and policy limits - Buying a minimal quantity of coverage will keep your expenses down, but if you have to file a claim, don't be surprised if you have to pay more out-of-pocket than usual.
The number of people you employ - Louisiana law dictates that worker's compensation insurance is usually necessary if you hire anyone. As you hire more personnel, the costs will probably increase. Plan any data you expect to integrate when requesting an insurance quote.
Get a Quote for Louisiana Business
Louisiana businesses can request a quote at InsuranceAdvisor.com. Choose your state, then choose from General Liability, Commercial Property, Business Auto, and Workers’ Compensation insurance and answer the application questions. Once we receive your request, we will provide you with a quote as quickly as possible.
Why Choose Insurance Advisor for Commercial Insurance in Louisiana?
We are licensed to provide insurance in Louisiana among other states, and can provide your business with quotes from different insurance carriers. You can request quotes for your business from the comfort of your home, office, or anywhere by visiting us at InsuranceAdvisor.com.
Once you create an account, your business information that you input is stored, and you can come back at any time to request quotes for your next renewal or add other lines of insurance. We also make it easy to get your certificates of insurance for clients, renew your insurance, or update your information. We aim to make managing your business insurance easy.
Frequently Asked Questions (FAQ) about Louisiana Insurance
1. How much is business insurance in Louisiana?
The median annual cost of small business general liability insurance in Louisiana is around $55 per month. Insurance prices will vary based on certain factors, such as:
- Type of business and its location
- Business operations
- Annual revenue and payroll
- Types of insurance coverage
- Policy limits and other options
2. Where can I get inexpensive business insurance in Louisiana?
The old saying, “If you want more types of incidents to be covered, you will pay more for insurance. The cheapest insurance is never the best insurance. Get more than one quote from the same or different agents so you can see how one insurance company’s rates compare to another’s. Always read the exclusions in the policy. This is where you find what is NOT covered. Get an affordable option with the most common mishaps likely to happen to your business- insured and not listed under exclusions. The old saying, “You get what you pay for,” is very true with all types of insurance.
3. What types of business insurance are required for businesses in Louisiana?
It's recommended that small businesses in Louisiana carry the following insurance:
- General Liability Insurance
- Professional liability insurance
- Cyber insurance
- Workers Compensation Insurance
- Business Property Insurance
- Commercial Auto Insurance
4. Which insurance companies are best in Louisiana?
As a Louisiana-licensed commercial insurance agency, we will determine the best insurance company for your business. Insurance companies often specialize in specific business industries which can vary from state to state. An independent insurance agent matches your business with carriers that can fulfill your company's insurance needs. Visit us at InsuranceAdvisor.com to request a quote for General Liability, Workers Compensation, Business Property, Business Auto or Umbrella insurance.
5. How to find out if a business has liability insurance in Louisiana?
Just ask your vendor or product supplier for a copy of their general liability certificate of insurance to be made out to your company. Your business should keep certificate of insurance on file for all service providers, product distributors. The Certificate of Insurance will show the policy number, the insurance company that provides coverage and usually lists their agency’s information. If still in doubt, you can call the agency to verify the coverage shown on the certificate. Remember, a certificate is really only a snapshot of the insurance carried at that moment. For instance, if your vendor doesn’t make the next installment, the company’s insurance may be cancelled for non-payment or not renewed. It is advisable to get certificates updated at every renewal of your vendor, if there insurance renews in January, request a current certificate in January.
6. What is the cost of business liability insurance in Louisiana?
General liability insurance typically costs an average of $55 per month for small businesses. This is based on the median cost of general liability insurance coverage for small businesses in the state.