For the industrial insured exemption, how many employees must a business have at a minimum?

The industrial insured exemption allows certain businesses to be classified differently for insurance purposes, which can facilitate access to surplus lines coverage. To qualify for this exemption under Louisiana law, a business must employ a minimum of 25 full-time employees. This threshold is established to ensure that the businesses utilizing this exemption have a sufficient scale and complexity in their operations, which may merit different insurance needs and allow for a more tailored coverage approach.

By requiring a minimum of 25 employees, the regulation aims to differentiate larger, more established entities from smaller businesses that might not require the same level of complex and specialized coverage. This distinction helps manage risk by ensuring that only those businesses with sufficient resources to self-manage risks associated with their operations can utilize the surplus lines insurance market effectively.