Starting a Louisiana Brokerage
What New Real Estate Brokers Need to Know about E&O Insurance
Real Estate Errors & Omissions | New Louisiana Brokerages
Opening a real estate business in Louisiana? Congratulations! Let’s dive in to the basics (and nuances) of E&O insurance for Louisiana brokers so you can embark on your journey with knowledge and confidence.
In a rapidly evolving Louisiana real estate landscape, having a top-notch real estate errors and omissions (E&O) policy provides unparalleled peace of mind.
Whether you’re establishing an upscale real estate agency in Baton Rouge, opening a property rental firm in New Orleans, or anywhere in between, E&O is crucial.
Currently, the Louisiana Real Estate Commission (LREC) mandates that LA real estate agents maintain E&O insurance. This requirement aligns with the practices of many states like Mississippi and Tennessee.
The Nuances of Louisiana Real Estate E&O Policies
There are typically two forms of E&O coverage found in Louisiana:
1. Individual E&O Policies: Often ranging from $100 to $500 annually per agent, these are influenced by factors such as state-specific requirements, chosen insurance company, and additional coverages. They’re most common in mandatory E&O states, like Louisiana.
2. Firm-Wide E&O Policies: These cover the entire real estate firm, including brokers, agents, and independent contractors. Firm policies often have stronger coverages than many LA individual E&O policies. Costs vary based on factors like your firm’s gross commission income (GCI), number of agents, and past claims history.
For example, a firm anticipating less than $1 million in GCI for its initial year might expect to pay between $600-$2,000 for a $1 million limit E&O policy.
Finding Quality E&O Coverage in Louisiana
Many common real estate professional liability policies in Louisiana do not offer adequate coverage for claims, such as:
- Contingent bodily injury or property damage lawsuits
- Property management
- Fair housing claims
- Regulatory complaints
- Appraisals
- Pollution Claims
Ensure your chosen policy doesn’t leave you vulnerable. Talk to an independent insurance agent who specializes in real estate E&O. You can also check out our ultimate guide to Real Estate Errors & Omissions for a deeper understanding of these common E&O issues.
Securing the Right E&O for Your Louisiana Real Estate Business
Navigating E&O can seem daunting, but our team is here to simplify it for you. We specialize in helping brokers identify potential coverage gaps or risks. By collaborating with various insurance providers, we present a broad spectrum of options tailored to your distinct needs and budget.
Ready to take the next step? Begin by filling out our form or scheduling a discovery call via Google Meet. Let’s secure the best E&O for your blossoming Louisiana real estate venture.
FirmSecured is powered by Veritas Risk Management, an independent insurance agency licensed in over 30 states, including Louisiana.
Cyber & General Liability Insurance
As tech advancements revolutionize real estate, the threat of cyber risks becomes more pronounced. Many E&O policies might offer limited cyber coverage, so understanding the need for dedicated cyber liability insurance is paramount. Third party wire fraud, ransomware, data breaches, and more are all increasingly common.
General liability coverage, and commercial property insurance if you own a building, is crucial for every new Louisiana business.
Learn more with our dedicated guide on Real Estate Cyber Liability Insurance. Plan ahead, safeguard your firm, and stay ahead in the Louisiana real estate landscape with cyber and general liability insurance.
Your Real Estate E&O Team!
FirmSecured is backed by Veritas Risk Management, an independent insurance agency with licensing across numerous states, including Louisiana.
Our mission? Ensuring every Louisiana real estate entrepreneur is informed, equipped, and ready to thrive.
We know you have a lot on your plate as you open your new real estate agency. Let’s find 15 minutes on Google Meet to discuss how you can secure the right E&O, cyber, and general liability insurance to protect your new firm.
