Located in the southern region of the United States, Louisiana is known for its jazz music, creole food, crawfish — and of course Bourbon Street. Its annual Mardi Gras festivities draw tourist far and wide. But the Bayou State is also home to many aspiring entrepreneurs and small business owners who dream of success. A thriving tourist area, film industry, and foodie state, having a business in Louisiana is as exciting as getting beads at a Mardi Gras parade. Yet, all fun aside, employees in this southern state know that business insurance in Louisiana is a prudent and necessary investment.
Standard Business Insurance Coverages in Louisiana
Business Owners Insurance in Louisiana is an insurance policy held by an organization, also known as a BOP, and is a comprehensive small business insurance package that offers various types of coverages. A BOP integrates two principal coverages in a single policy: property insurance and general liability. The insurance coverage for business organizations transfers risk away from the owner of the organization to the insurance company by offering security for various kinds of liability, such as buildings, equipment, and liabilities related to legal issues. Typical indemnity claims that business owners insurance coverage safeguards you from are: injury to an employee, income loss, specialized liability claims, important papers, equipment collapse, fire, liability claims, employee corruption, money and securities, and property claims. Additional components for the Louisiana business may be supplemented from the original BOP coverage depending on the possible risks of the organization.
General liability insurance in Louisiana is offered to protect small business owners from financial burdens that can surface from careless acts, omissions, or both, caused by the company or their workers that may result in physical injury or property damage. Some types of exposures generally covered under general liability insurance are contractual liabilities, liabilities from merchandise sold, and accidents on the premises of the organization. The injury or damage must be due to negligence and not deliberate. General liability insurance for companies in Louisiana may be a single policy or part of a package policy.
A package policy is a unique type of insurance policy for a business proprietor that includes two or more different kinds of insurance in one insurance policy, also called a bundle. A typical package policy in the Pelican State will combine general liability insurance (detailed above) and commercial property (explained below); although a package policy may be organized to contain several types of coverage, depending on the desires of the business. A package policy is accommodating to a small business owner as it allows them a good deal of flexibility to purchase a policy tailored to the needs and risk exposures of the entity.
Commercial Property Insurance in Louisiana provides protection for a variety of New Orleans, Shreveport, or any other Louisiana-based commercial properties, and includes, important papers, dwelling, materials, gear, furniture, inventory, and personal property. Whether your business is located in Baton Rouge or New Orleans, commercial property insurance provides protection against various types of perils, including windstorm, hail, explosion, fire, robbery, wreckage, natural disasters, and lightning strikes. Different types of industries may benefit from this sort of insurance, including most every type of retailer, not-for-profit entity, manufacturing firm, and service-oriented organization.
Any company that has employees working for them will need Workers’ compensation insurance to provide coverage for employee occupational injuries or work-related illnesses. Workers’ compensation insurance in Louisiana is a no-fault, state-mandated insurance structure that compensates workers who suffered injuries or an illness while working. Because the state of Louisiana has a requirement for any organization with employees to carry workers’ compensation, they may be subjected to fines and civil penalties if they fail to carry it, and might even cause the company to be liable for the cost of injuries sustained by their employees. By having workers’ compensation insurance in Louisiana, workers benefit from medical care and lost pay coverage and in return they cannot sue the company as a result of the injury or illness.
In the state of Louisiana, any company owning at least one vehicle should be protected by commercial auto insurance. Commercial auto insurance in Louisiana offers financial protection to business executives and their drivers by providing coverage for a company’s use of vehicles such as trucks, vans, and cars. Commercial auto insurance provides protection against damages and medical costs that result from vehicle accidents, as well as vandalism and damage from hail storms and similar natural disasters. Coverage for businesses in Louisiana include a variety of vehicles whether they are rented, owned, leased, or hired by the company, along with vehicles owned by the workers and used for business purposes. For this latter reason, it’s recommended that organizations acquire a commercial auto insurance policy if employees use their own vehicle for business related tasks; this is referred to as non-owned commercial auto insurance.
Commercial umbrella insurance in Louisiana provides high excess limits for catastrophic losses. Your organization will benefit from umbrella insurance if the coverage limits of your existing liability policies are exhausted or do not cover all primary loss exposures. Commercial umbrella insurance in Louisiana is a vital resource that fills in the gaps in your primary business liability coverage. Umbrella insurance is a marvelous way to have additional protection for property damage, bodily injury, or other types of liabilities.
Some Additional Business Insurance Coverages in Louisiana to Consider
Errors and Omissions insurance policies offer Louisiana companies and individuals protection against lawsuits and claims completed by clients or customers for neglectful duties, errors, and oversights made through business operations that resulted in a loss of revenue or output on the part of the customer or client. Errors and Omissions insurance in Louisiana covers legal defense and court costs, along with settlements which is specified on the insurance contract. Small business owners that offer services or consulting advice, either with subcontractors or directly, should consider errors and omissions insurance.
Professional liability insurance in Louisiana provides peace of mind for professionals, such as medical, legal, accountants, and many others from having to pay the total legal cost of and defending against a claim of professional negligence. The coverage’s principal focus is on the financial loss on the part of the client from this type of alleged claim with respect to a product or service provided by the professional. Professional liability insurance may provide claim coverage, even if the legal actions turn out to be baseless. Professional liability insurance in Louisiana is required by law in various types of professional practices, including medical and legal, but is also required by contract in other industries.
Employment Practices Liability Insurance in Louisiana, also known as EPLI, provides small business owners with security against accusations of discrimination, wrongful termination, sexual harassment, breach of contract, pay law violations, false imprisonment, emotional suffering, libel, slander, mental torment, neglectful hiring and promotion decisions. Employment practices liability insurance is based on the laws, acts, and protection from Title VII of the Civil Rights Act of 1964, Age Discrimination in Employment Act, and Family and Medical Leave Act — all of which the Equal Opportunity Employment Commission (EEOC) enforces in Louisiana and around the country.
Fidelity Bonds in Louisiana
Fidelity bonds in Louisiana are a specific type of insurance offered to small businesses in order to guard against disastrous losses like fraud, embezzlement, or theft by one or more professionals. Since reimbursement from employee dishonest practices is typically not available due to the cash already being spent, fidelity bonds provide an important safeguard for a small business owner who would otherwise have to suffer these monetary losses. Even if your business has extra security against these kinds of acts such as staff screening, internal controls, and watchful supervision, it isn’t always enough. Losses suffered from worker thefts of money, property, or securities are all covered under fidelity bonds insurance in Louisiana. There are three chief types of fidelity bonds including business service bonds, standard employee dishonesty bonds, and ERISA bonds.
Surety Bonds in Louisiana
A surety bond is a essential agreement or contract shared between three parties: the principal, obligee, and surety (insurance company). It represents the guarantee they will pay a specified total if a party fails to meet a commitment, like fulfilling the terms of the contract. A surety bond shields the obligee from loss if the contract is not fulfilled, while the surety company takes on the liability for not performing. A surety bond is normally required for financial compensation. Owners of Louisiana-based companies may require a surety bond to guarantee payment of utility bills or state sales taxes, while a contractor may need to post a bond to secure work or be qualified for licenses. While surety bonds in Louisiana are more commonly used in the construction industry, surety bonds are also used by mortgage brokerage companies, medical supply firms, automobile dealerships, health club establishments, notary public organizations, and others. Since many small companies in the Greater New Orleans area and throughout Louisiana need and make use of bonds, a wide array of types and features of surety bonds in the state offer a range of guarantees.
Business insurance in Louisiana provides a barrier between an unfortunate event or incident and disaster for your New Orleans, Baton Rouge, or Shreveport small business. Operating a small business in Louisiana has the benefit of working in a state rich in both history and culture. So protect your business in this amazing state, by incorporating business insurance into your risk management program.