Appropriate Limits for Residential GC’s
As inflation increases the price of materials, labor, and homes that general contractors are working on, it is important for contractors to ensure they have the right amount of coverage limits.
Contractors working on high-value homes generally need higher general liability (“GL”) coverage limits due to the increased potential for larger and more expensive claims. While the most common GL coverage limits for residential contractors in Louisiana are $1 million per occurrence and $2 million aggregate, these amounts may not be sufficient for projects involving high-value properties.
What can be done? Consider umbrella coverage. This type of coverage provides an extra layer of liability coverage beyond your primary GL coverage limits. If a claim exceeds your GL limits, an Umbrella may cover the difference. This can be a vital tool to protect and safeguard your business and assets.
The LHBA GL Trust offers our indemnitees a variety of coverage limit levels. A builder can choose to take the base limit level ($500,000 per occurrence / $1,000,000 aggregate limits), the mid-range level ($1,000,000 per occurrence / $2,000,000 aggregate limits) and our highest level ($2,000,000 per occurrence / $2,000,000 aggregate limits). If you want higher limits than our highest level, the LHBA GL Trust can connect you with brokers who offer Umbrella coverage that sits over the GL Trust.
For more information, please call John Brooks at 225-999-8820.