What Changed?
The LSLBC now has additional authority to take action against contractors who fail to maintain insurance appropriate for their licensed operations. That could include disciplinary action, suspension, or even revocation of a contractor's license.
The key takeaway is simple: Your insurance policy needs to match the work you actually perform.
What does this mean for you?
Many contractors grow and evolve over time. You may have started with one type of work but have since expanded into additional services. If your insurance policy hasn't kept pace with your business, you could face problems during the licensing process, or worse, discover coverage gaps after a claim.
Now is a good time to review your operations and ask yourself:
- Have we expanded into new types of construction or services?
- Are we performing work that wasn't originally listed on our policy?
- Have we added employees, equipment, or new areas of expertise?
- Does our current policy accurately represent what we do every day?
If the answer to any of these questions is "yes" or "I'm not sure," it's worth having your policy reviewed.
Certificates of Insurance
For contractors required to submit proof of insurance to the LSLBC:
- The LSLBC must be listed as the Certificate Holder.
- Certificates are generally only required when applying for or renewing your contractor's license and when your insurance policy renews.
- Insurance agents should not add custom language to Certificates of Insurance beyond the wording specifically required by the LSLBC.
- If your policy contains an exclusion for work you're licensed to perform, your certificate may not meet the Board's requirements.
Our Recommendation
Insurance should evolve as your business grows. Waiting until your contractor's license renewal—or worse, until after a claim occurs, isn't the time to discover your coverage no longer matches your operations.
At Kastner Insurance, we recommend an annual insurance review to ensure your policy keeps pace with your business, meets Louisiana licensing requirements, and protects the work you've built.
Just as important is having an open, honest relationship with your insurance advisor. Communication is a two-way street. We rely on you to keep us informed when your business changes—whether you've added new services, hired employees, purchased equipment, or expanded into new types of work. In return, it's our responsibility to help identify potential coverage gaps, explain your options, and make recommendations that protect your business.
Trying to save a few dollars by not disclosing changes or "hoping it's covered" can become far more expensive when a claim is denied, or your contractor's license is put at risk. The more we know about your business, the better we can protect it.
If your operations have changed, or if you simply want peace of mind knowing your coverage aligns with your business, our team is here to help.
About Kastner Insurance Group
Levi Kastner : Nov 28, 2023 3:38:46 PM
