WHAT LOUISIANA CONTRACTORS NEED TO KNOW: CHANGES TO LOUISIANA’S AOB AND PAYMENT FOR WORK PERFORMED AFTER HURRICANE FRANCINE.

Louisiana Contractors can no longer operate and perform work on homeowners first party property claims like they did in the wake of Hurricane Laura and Hurricane Ida. With Hurricane Francine on the horizon here are some things Louisiana Contractors must be cognizant of if they plan performing work in the wake of Hurricane Francine. 

The Louisiana Legislature explicitly removed Assignment of Benefits Contracts (AOB) as a valid form of recovery for contractors performing work in the wake of Hurricanes. Here, La. R.S. R.S. 22:1275 prevents an insured from assigning his or her rights and benefits under an insurance policy to their contractor of choice.  Louisiana Contractors may no longer directly pursue Insurance companies for their invoices for work performed at their client’s insured property.

All Louisiana Contractors must revise their “insurance job” contracts to protect their business and ensure payment.

Louisiana Contractors should also note that estimates and reports, detailing hurricane or wind damage, provided to their client’s insurer will likely cause your company to be considered an agent of the insured. This heightened duty present in the newly reformed La R.S. 22:1892 imparts an affirmative duty on Louisiana Contractors and other representatives of an insured to provide the basis for coverage for terms under the policy with appropriate good faith evidence that such damage exists.

If you have completed work at a Louisiana policyholder's property and you or your client have not received full payment, contact Montiel Hodge, LLC to explore your options for recovery.