Louisiana Real Estate E&O Insurance
Real Estate Errors & Omissions in LA
Louisiana E&O Requirement
Louisiana, along with 13 other states in the United States, requires real estate agents to purchase errors & omissions (E&O) insurance. Other states requiring real estate E&O coverage include Tennessee, Colorado, and Mississippi.
The Louisiana Real Estate Commission (LREC) allows agents or brokerages to purchase errors and omissions coverage from the LA’s group program or any private company that meets the Louisiana’s real estate E&O requirements.
Some LA real estate brokers and agents buy an individual E&O policy and brokerages often carry an additional excess E&O policy. While this has worked for some agents, a number of Louisiana firms who have carried individual E&O coverage previously have been pleasantly surprised to find out about other options. A single E&O policy covering both the firm and the real estate agents is often very competitive in price, and provides stronger and broader E&O coverage. Some of LA’s largest real estate brokerages carry this type of E&O coverage. Let’s dig a little deeper and find out why…
If you already have a “firm” E&O policy, keep in mind that there is a lot of variety out there between companies that could cost you thousands in the event of a denied claim.
How are Louisiana E&O Policies Different?
Whether you sell commercial real estate in Baton Rouge, focus on residential real estate outside of New Orleans, or operate a property management firm in Metairie or Lafeyette, a strong and quality E&O policy will provide peace of mind in the current real estate market. But how exactly do the different LA E&O policies differ?
Most Louisiana real estate errors & omissions policies provide little (or no) coverage for a number of claims currently on the rise.
For example, E&O policies in real estate often exclude contingent bodily injury and property damage claims. If one of your clients were to fall on the stairs because an agent (allegedly) failed to warn them, many LA brokers would be paying this claim out of pocket.
Many policies often exclude certain property management activities, provide little or no coverage for mold and discrimination / fair housing claims, or don’t provide adequate escrow or earnest money coverage. These are just a few of the issues our team commonly sees in LA real estate professional liability coverage.
If you want to easily put multiple options on the table for your firm, as well as review your policy carefully for these gaps, our team is here to help.
We won’t simply offer cheap E&O quotes. Our goal is to help brokers 1) understand the options available to their firm, and 2) clearly understand what their current policy covers and excludes.
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Louisiana Cyber Insurance (Real Estate)
The Louisiana Real Estate Landscape is Changing...
Cyber liability insurance is quickly becoming a necessity for LA real estate agencies. Some real estate franchises in Louisiana are even beginning to require their agencies to purchase cyber insurance. While some general liability or errors & omissions policies can include some coverage for cyber incidents, a stand-alone cyber policy is often the best option for real estate brokerages. Brokers have been facing cyber claims including wire fraud, cyber extortion or ransomware, copyright violation lawsuits, and business email compromise. Learn more about cyber coverage in real estate.
Louisiana General Liability Insurance
Would you rather have 1 trusted liability insurance agent?
If your agency is trusting our team at FirmSecured for you errors and omissions or cyber liability insurance needs, we can also assist your firm with general liability insurance. Most professional liability policies (and real estate franchises) require LA agencies to maintain general liability insurance coverage. Let us know if you would like to also gather general liability options, and we are ready to get to work for your firm.