Small Business Insurance Checklist for Louisiana & Texas

Why Business Insurance Is Different

Personal insurance protects you and your family. Business insurance protects the entity you've built — your revenue, your employees, your reputation, and your personal assets from business-related liability. One lawsuit, one serious employee injury, or one major property loss can end a small business that wasn't properly covered.

The good news: the right coverage doesn't have to be expensive. An independent agent can structure a policy that fits your actual risk profile and budget.

The Core Coverage Checklist

☑ Commercial General Liability (CGL)

The foundation of any business insurance program. CGL covers:

• Bodily injury to a customer or third party on your premises or job site
• Property damage you cause to someone else's property
• Personal and advertising injury (libel, slander, copyright infringement)
• Legal defense costs — even if the claim against you is frivolous

☑ Commercial Property Insurance

Covers your business's physical assets — your building (if you own it), equipment, inventory, furniture, and computers — against fire, theft, vandalism, and certain weather events. If you lease your space, you still need coverage for your business personal property inside it.

☑ Commercial Auto Insurance

If you or your employees drive for business purposes — making deliveries, visiting clients, driving between job sites — personal auto insurance will not cover accidents that occur during those activities. Commercial auto covers:

• Vehicles owned by your business
• Employee vehicles used for business (hired and non-owned auto)
• Liability and physical damage for business-use vehicles

☑ Workers' Compensation

Louisiana requires most employers with one or more employees to carry workers' compensation insurance. It covers:

• Medical expenses for work-related injuries or illnesses
• Lost wage replacement for injured employees
• Employer liability protection against employee injury lawsuits

☑ Business Interruption Insurance

If a covered event (fire, severe storm damage) forces you to temporarily close, business interruption insurance replaces lost income and covers ongoing expenses like rent and payroll while you rebuild. Often bundled with commercial property coverage in a Business Owner's Policy (BOP).

☑ Professional Liability (Errors & Omissions)

If your business provides professional services or advice, E&O insurance protects you against claims that your work caused a client financial harm — even if you did nothing wrong. Consultants, contractors, real estate professionals, and service businesses should all consider this.

Coverage You May Not Have Thought About

• Cyber Liability — covers data breaches, ransomware, and customer notification costs. Increasingly important even for small businesses that store customer data.
• Employment Practices Liability (EPLI) — covers claims of wrongful termination, discrimination, or harassment by employees.
• Umbrella/Excess Liability — provides an extra layer of liability coverage above your CGL and auto limits. Cost-effective way to significantly increase your protection.
• Inland Marine — covers equipment and tools in transit or at job sites, not just at your fixed location.

Common Business Insurance Mistakes

1. Using personal auto for business driving. Your personal carrier can deny a claim — or cancel your policy — if they discover you were using your vehicle for business.
2. Misclassifying employees as contractors. If a worker is legally considered an employee, you may be responsible for workers' comp regardless of what your contract says.
3. Underinsuring your property. Insuring equipment at purchase price rather than replacement cost can leave you significantly short at claim time.
4. Not reviewing your policy as the business grows. A policy that fit a 2-person operation may be woefully inadequate for a 10-person team.
5. Skipping the certificate of insurance. Always provide COIs to clients and vendors who require them — and make sure yours is current.

What Does Business Insurance Cost in Louisiana?

Cost varies significantly based on your industry, revenue, number of employees, claims history, and coverage limits. As a general benchmark:

Coverage Type	Typical Annual Range (Small Business)
General Liability	$500 – $3,000+
Commercial Auto	$1,200 – $4,000+ per vehicle
Workers' Compensation	Varies by payroll and industry class
Business Owner's Policy (BOP)	$800 – $3,500+

The best way to know your actual cost is to get a quote. Harbor Point shops multiple commercial carriers to find competitive pricing without sacrificing coverage quality.