Discontinued Operations Coverage and Legal Consultation

When it’s time to hang up your toolbelt and retire, one of your top checklist items is to cancel your commercial insurance coverage. You have found a buyer, or maybe you are shutting down the business altogether, and ending your coverage seems like a logical step before you sail off into the sunset. But what happens if a claim arises after your business has closed?

This is where discontinued operations insurance coverage comes in. Without it, you could be leaving your personal assets vulnerable to lawsuits or claims that arise after you’ve canceled your policy.

Why You Need Discontinued Operations Insurance Coverage

A discontinued operations amendment to your coverage provides products/completed operations coverage even after your business is closed. It’s crucial to understand that potential liabilities don’t disappear the moment your company shuts down. If a defect in a past project leads to damages or injuries, you could still be held financially responsible—even years later.

With discontinued operations insurance coverage, retired builders can ensure they remain protected from such risks without paying for full-scale commercial insurance.

Exclusive Coverage for LHBA Builders

The LHBA GL Trust offers a specialized discontinued operations insurance coverage plan at a reduced cost for retired builders. To qualify, the builder must go an entire year without constructing new homes or engaging in any ongoing operations.

Here’s how the coverage is structured:

• Year 1: $4,000 contribution
• Year 2: $3,500 contribution
• Year 3: $3,000 contribution
• Year 4 and beyond: $2,500 contribution

It’s important to note that this coverage does not apply to any ongoing operations—only completed projects.

Legal Consultation for Builders Preparing for Retirement

A significant benefit of being an Indemnitee (member) of the LHBA GL Trust is access to two free hours of legal consultation. This service is invaluable for builders preparing for retirement, helping them:

• Review legal documents related to past projects
• Discuss potential or open claims
• Understand their rights under discontinued operations insurance coverage

Many builders overlook the long-term risks of canceling their insurance too soon. Consulting with a legal expert ensures you fully understand your coverage options and make informed decisions about protecting your assets.

Secure Your Future with Discontinued Operations Coverage

Retiring from the construction business is a milestone worth celebrating, but it’s essential to secure your financial future with discontinued operations insurance coverage. The LHBA GL Trust makes it easy and affordable for retired builders to maintain protection without unnecessary costs.

For more information on the LHBA GL Trust and how this coverage can benefit you, contact John Brooks at jbrooks@lhbagltrust.com or call 225-999-8820.