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Do I have to get workers comp

Louisiana

If I am a single member LLC do j have to have workers comp.for louisiana home improvement license

1 reply

Apr 25, 2021

Whether or not you need worker's compensation insurance is a fact specific inquiry. The main question is do you have any employees? Many contractors believe that they do not, however, did you know that a subcontractor’s employees could be considered the employees of a general contractor under Louisiana law? This classification is critical when defending workers’ compensation claims and tort claims from employees of subcontractors and obtaining proper insurance coverage. It can come with advantages and disadvantages, and it is important to understand where potential exposure may lie and how to mitigate those exposures in your contracts. The laws of each state are often different on these issues; thus it
is often best practice to tailor each contract to Louisiana law. 

A good clear contract will avoid many underlying issues that may befall the contractor whose contract is not clear. All too often a construction dispute may be lost before a lawsuit is
even filed because of missing contract terms. It is critical to enter litigation from a position of contractual strength. 

Often, a general contractor may be benefit from being considered a statutory employer. These provisions may decrease tort exposure, litigation costs, while not impacting workers’
compensation exposure. 

Most contracts not specifically tailored to Louisiana do not properly afford contractors all available protections under Louisiana workers’ compensation law. For example, the AIA
standard form contracts, including AIA 401-2017 Standard Form of Agreement Between Contractor and Subcontractor, does not contain a stock provision
regarding this issue.  

Finally, it is important to evaluate any hold harmless, indemnification, subrogation, or other liability clauses in conjunction with workers’ compensation exposure. We also find that
standard form subcontracts may have provisions that are with Louisiana anti-indemnification
law within construction contracts.   

All things considered, I would recommend tailoring your contract to account for the above. Give us a call if you would like us to assist you. 504-323-5885.

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