What Does General Liability Insurance Cover for Builders?

General Liability (GL) insurance coverage is required for all of Louisiana’s residential builders per Louisiana Revised Statutes 37:2156.1E; this statute requires at least $100,000 of GL coverage. The requirement for GL coverage can be met through liability protection provided by entities like the LHBA GL Trust.  See La. R.S. 37:2156.1E. 

GL coverage can help cover expenses for non-employees injured on the jobsite, or if there is any damage to property that doesn’t belong to the builder. GL coverage protects the general contractor from potential lawsuits and other claims that may arise because of a contract between the builder and his/her client. GL coverage is the basic business liability coverage that all businesses must have.

What Does General Liability Insurance Cover for Builders?

Bodily Injury

If someone (not your employee) trips, falls and is injured at one of your jobsites, you could be held liable for their injuries. GL coverage helps you pay for medical, legal, and other costs associated with the event.  GL coverage is not Workers’ Compensation Insurance.

Property Damage

Physical injury to tangible property, including resulting loss of use of that property. GL coverage helps cover the cost to repair or replace the damaged item, and it can help with any legal costs associated with being sued for causing damage.

Personal and Advertising Injury

If you or an employee make false statements against a competitor and that competitor sues you for slander, your GL coverage can help cover the legal costs of defending you.

Product and Completed Operations Liability

Coverage for bodily injury and property damage that occurs after a project is completed.

GL coverage, however, does not cover the warranties builders are required to provide under the New Home Warranty Act.

The LHBA GL Trust has been in operation since 2003 and has changed the way the builders are protected in Louisiana. The program offers general liability coverage at cost – a value to builders that cannot be matched by any other general liability provider doing business in Louisiana. The GL Trust is governed by its members and is controlled by builders, for builders.