Small businesses are an essential part of the Louisiana economy, employing more than half of the state’s workforce.1 All of these companies need business insurance to stay safe.
Having the right Louisiana business insurance coverage can help you avoid financial losses. It can help pay expenses resulting from unexpected events such as:
NEXT is 100% dedicated to small business and insures more than 1,300 types of small businesses and self-employed workers. We make it easy for you to get the right coverage at the right price and purchase your policy online in less than 10 minutes.*
Continue reading to learn about important types of business insurance in Louisiana. Or get a free instant quote to see customized coverage options for your business.
Louisiana business insurance usually involves a package of different types of coverage, which insurance companies call policies or insurance products. You can combine them into a customized insurance package based on your business insurance needs.
Business insurance in Louisiana often consists of some combination of:
Commercial auto insurance, which can cover damages from accidents in business-owned vehicles.
Louisiana general liability coverage is designed to protect your business if you’re accused of causing an injury or destroying property. It can help you pay for medical care and to repair or replace damaged items, and can help cover legal defense costs if you’re sued.
Here’s an example of how general liability could help a small business in Louisiana:
A New Orleans homeowner claims that a plumbing company damaged a hardwood floor while repairing a sink. General liability insurance could help the plumbers pay to replace the client’s floor.
Cleaning and construction companies in Louisiana may want to include optional tools and equipment coverage with their policy. It can help repair or replace work gear that is lost, stolen or damaged outside of normal wear and tear.
Keep in mind that many commercial landlords and clients will require proof of business liability insurance before they’ll sign a contract with your business.
Louisiana requires most businesses with employees to carry Louisiana workers’ compensation insurance.
If an employee gets hurt on the job, workers’ compensation insurance can help cover medical costs, physical therapy and a portion of lost wages while they recover.
For instance, a worker at a Lafayette construction company is hurt by a falling object at a job site, needs an ambulance and stays in the hospital overnight. Workers’ comp coverage could help pay for the employee’s medical expenses and help cover lost wages while they’re unable to work.
If your business involves driving, you’ll want commercial auto insurance. This kind of coverage is important because personal auto insurance won’t cover work-related accidents.
If someone at your company has an accident in a company-owned vehicle, commercial auto insurance can help pay bodily injury and property damage costs.
For example, an employee of a Lake Charles specialty store has an accident while making a delivery in the company-owned truck and hurts another driver. Commercial auto insurance could help the retail business pay for the other driver’s medical bills and damages to the vehicles.
Small businesses that ask employees to drive their own vehicles or rent cars for business will want hired and non-owned auto coverage. This optional add-on is designed to pay for accident damages in vehicles that aren’t titled to your business.
Louisiana commercial property insurance, sometimes called business property insurance, can help pay for business property that’s damaged or destroyed after a covered event, such as water, fire or wind incidents.
For example, a kitchen fire at a Shreveport family restaurant damages the grill. Commercial property coverage could help pay to repair the cooking station and replace cookware that was ruined.
It’s important to read your policy documents carefully to make sure there aren’t exclusions for your business. It’s common for insurance carriers not to cover flooding or hurricane damage.
Professional liability coverage, also known as E&O or errors and omissions insurance, can help your business if you’re accused of professional negligence. It can help pay legal defense fees or settlements after claims of work mistakes, missed deadlines or incomplete work.
For example, a client says that a self-employed IT consultant in Baton Rouge failed to properly configure a network, which caused a work delay and lost revenue. The client’s legal team threatens a lawsuit to recover financial damages.
E&O coverage could help the consultant pay to settle the claim out of court. It could also help cover attorney fees, court costs and any damages if the case ended up in front of a judge.
Coverage costs for your Louisiana-based company will depend on your business insurance needs and business operations. Every business has different coverage requirements, potential risks and unique circumstances that will affect the price you’ll pay.
Your business insurance cost will depend on factors including:
If your business is routinely exposed to the risk of injury, property damage or other types of accidents, your insurance costs may be higher. For example, insurance for a construction worker will be priced differently than for professional services workers like accountants.
Business insurance will cost more as you add policies to your insurance package. Most businesses need more than one kind of coverage to protect them in different situations.
The number of people you employ will also affect what you pay for your business insurance, especially if you’re purchasing a Louisiana workers’ compensation policy. Be prepared to share your payroll costs and exact number of full-time and part-time employees when you get your insurance quote.
The best way to explore coverage options and find out how much you’ll pay for a business insurance policy is to get a free instant quote from NEXT.
You can also use our insurance calculators for a general estimate of insurance costs in Louisiana:
We offer a fast and easy way for small business owners to get a business insurance quote online, purchase coverage and instantly share a certificate of insurance. The entire process usually takes less than 10 minutes.
You can also chat with our U.S.–based NEXT licensed insurance agents if you need help or have questions.
Learn more about insurance options in the states where you work.