Insurance is essential for contractors operating in Louisiana, where unique risks and regulations require comprehensive coverage. This guide details insurance costs and requirements based on our analysis of actual quotes from leading carriers.

Secure your foundation by exploring general construction liability insurance.

General Liability Insurance for Louisiana Contractors

General liability insurance protects your contracting business from third-party claims of property damage and bodily injury. Based on our analysis of over 800 contractor quotes, here are the typical costs for Louisiana contractors:

Revenue SizeAverage Premium% of RevenueFavorable RatePotential Savings
$500K$16,0003.2%$13,00019%
$1M$30,3003.0%$20,90031%
$2.5M$89,7003.6%$68,40024%

These premiums assume:

  • Clean claims history (5+ years without incidents)
  • Standard $1M/$2M coverage limits
  • Typical mix of residential and commercial work
  • Approximately 10% subcontractor costs

Louisiana has notably higher general liability rates compared to other states, making it crucial to shop carefully for coverage.

Worker’s Compensation Insurance for Louisiana Contractors

Worker’s compensation insurance is mandatory for Louisiana contractors with employees. Based on our analysis, Louisiana contractors typically pay around $6,592 per employee annually for workers’ compensation coverage.

For Louisiana contractors, typical workers’ compensation costs per $100,000 of payroll average $17,760, placing it among the most expensive states for this coverage.

Key premium factors include:

  • Employee classification codes
  • Annual payroll
  • Claims history
  • Safety programs
  • Experience modifier rating (EMR)

Common contractor classification codes and approximate rates in Louisiana:

  • Code 5606 (Project Manager/Supervisor): $4-7 per $100 of payroll
  • Code 5645 (Residential Construction): $10-15 per $100 of payroll
  • Code 5403 (Commercial/Large Projects): $15-20 per $100 of payroll

Additional Business Insurance for Contractors in Louisiana

1. Commercial Auto Insurance

  • Typical cost: $1,200-$4,500 per vehicle annually
  • Required for business-owned vehicles
  • Higher limits often needed due to state risks
  • Coverage follows vehicles to all job sites
  • Protection for both owned and hired vehicles

2. Tools & Equipment Coverage

  • Cost: $1,800-$5,500+ annually for $15k-$50k coverage
  • Protects both owned and rented equipment
  • Enhanced coverage recommended for flood-prone areas
  • Coverage for theft, damage, and vandalism
  • Protection during transport between job sites

3. Commercial Property Insurance

  • Protects offices, storage facilities, and workshops
  • Annual premiums: $2,500-$25,000+ based on property value
  • Must include wind/hurricane coverage
  • Coverage for fire, theft, and natural disasters
  • Business interruption coverage available

4. Builder’s Risk Insurance

  • Premium: 0.25-1.0% of project value (higher due to weather risks)
  • Covers projects under construction
  • Special considerations for named storm coverage
  • Protection for materials and equipment on-site
  • Coverage for temporary structures

5. Flood Insurance

  • Special rates available for high-risk zones
  • Required in many Louisiana locations
  • Separate policy from standard property coverage
  • Critical for protecting assets in flood-prone areas
  • Coverage for buildings and contents

Get Louisiana Contractor Liability with ContractorNerd

ContractorNerd specializes in making insurance simple and data-driven for Louisiana contractors. Our platform offers:

  • Instant online quotes from top-rated carriers
  • Side-by-side coverage comparisons
  • Louisiana-specific expertise and guidance
  • Streamlined application process
  • Ongoing policy management support
  • Claims advocacy when needed

Our team of contractor insurance specialists understands Louisiana’s unique requirements and can help you:

  • Navigate complex state insurance regulations
  • Find competitive rates despite challenging market conditions
  • Ensure proper coverage for natural disaster risks
  • Optimize coverage levels for cost efficiency
  • Bundle policies for maximum savings

To get started with tailored quotes for your Louisiana contracting business, visit our online quote tool or speak with one of our contractor insurance specialists today.