Louisiana Real Estate Commission’s Group Policy

Designed for Louisiana Licensees

Click Enroll or Renew to the left for further information

The Louisiana Real Estate Commission (LREC) selected RISC to provide the state group E&O insurance policy, which is issued by Continental Casualty Company, a CNA insurance company. The program is designed specifically for Louisiana licensees and exceeds state minimum requirements. The state group program offers affordable E&O insurance to each and every active licensee by spreading the risk over a large number of insureds. Without the group program’s low premium, other carriers have no incentive to offer real estate E&O policies at affordable prices. In states without a group program, real estate E&O premiums may cost thousands of dollars and some licensees report being unable to obtain insurance at any price.

The program referenced herein is underwritten by Continental Casualty Company, a CNA insurance company. This information is for illustrative purposes only and is not a contract. It is intended to provide a general overview of the products and services offered. Only the applicable policy can provide the actual terms, coverages, amounts, conditions, and exclusions, which may be subject to change without notice. In the event of a claim, the nature and extent of coverage is determined based upon the claim’s facts, circumstances, and allegations and application of the relevant policy’s terms, conditions, and exclusions. The E&O program described herein is only available in Louisiana. CNA is a registered trademark of CNA Financial Corporation. Copyright © CNA. All rights reserved.

Sample Policies and Endorsements

1. 2024 Sample Policy

2. 2024 Optional Endorsements

3. 2024 Policy Features Flyer

4. Claims

5. Excess Coverage

Enroll or Renew

Thank you for considering our program. If you have questions about the program or how to purchase coverage, feel free to contact us or view our frequently asked questions. Please note we CANNOT accept any payment information over the phone.

NOTICE: This policy is a CLAIMS-MADE-AND-REPORTED policy and subject to its provisions, applies only to a claim first made against the insured and first reported to the insurance company during the individual policy period. No coverage exists for claims first made before or after the individual policy period unless, and to the extent, an extended reporting period applies.

January 1, 2024 to January 1, 2025 Policy Period – Now Available

NEW LICENSE RENEWAL DEADLINE THROUGH THE LREC IS SEPTEMBER 30, 2023

The Louisiana Real Estate Commission (LREC) has awarded the contract for the 2024 Louisiana Group Errors and Omissions (E&O) Insurance Program to Rice Insurance Services Center, a Division of AssuredPartners NL, LLC.  The 2024 cost to enroll is $149 ($142 premium + $7 LREC transaction fee) for $100,000 per claim / $300,0000 aggregate limits.

Effective April 1, 2022, Act 193 of the 2021 Regular Louisiana Legislative Session became law.  When real estate licensees are renewing their license with the Louisiana Real Estate Commission (LREC), they must show they have real estate Errors and Omissions coverage in place for January 1, 2024 – December 31, 2024. Licensees may enroll in the LREC group insurance policy during license review. Licensees who choose not to enroll in the LREC group insurance policy must submit an Independent E&O Coverage form and a copy of their policy declarations page during license renewal.

Important Dates from the LREC’s Website, Renewal FAQs – LREC:

• Timely License Renewal Period: August 1, 2023 – September 30, 2023
• First Delinquent License Renewal Period: October 1, 2023 – November 15, 2023
  ($50 delinquent fee for active and inactive licensees)
• Second Delinquent License Renewal Period: November 16, 2023 – December 31, 2023
  ($50 delinquent fee for inactive licensees; $200 delinquent fee for active licensees)

Basic Coverage through the Group Program:
Enrolling in the group program through the Louisiana Real Estate Commission (LREC) is easy when you apply for or renew your real estate license. Send the basic premium of $142 plus the $7 LREC processing fee when applying for or renewing your real estate license. DO NOT send basic premium to RISC.

Please direct any optional endorsement premium and questions regarding the group program to RISC.

Purchase Appraisal Program or Optional Endorsements: The Appraisal Program and/or optional endorsements may be purchased from RISC by completing the appropriate form and sending it with the applicable premium by check or money order (payable to RISC) to either address below:

DO NOT send these forms to LREC with your basic policy premium.

Individual Licensee Coverage

• Supplemental Enrollment Form: Use this form if you have already enrolled for the basic coverage in the LREC group errors & omissions program and wish to add optional endorsements to your coverage to be effective after January 1.

Firm Licensee Coverage – Not Available to Appraisal Firms

• Firm Supplemental Enrollment Form Use this form if your firm has already enrolled in the LREC’s group policy or plans to do so and has an active real estate firm license in another state that has a group program and requires firm licensees to maintain E&O coverage (these states are Colorado, Idaho, and Iowa). This endorsement conforms the firm’s insurance under the Louisiana group policy to meet the other state’s insurance requirements.

Appraisal Licensee Coverage
The Louisiana Real Estate Commission’s Group Program is now available to active licensed residential certified real estate appraisers, general certified real estate appraisers, or real estate appraiser trainees without also having an active real estate license.

• AppraiserEnrollment Form: Use this form to purchase coverage for any of the above-mentioned appraisal licenses effective  January 1*. YOU MUST PURCHASE BOTH THE BASIC REAL ESTATE POLICY AND THE APPRAISAL ENDORSEMENT IN ORDER TO OBTAIN COVERAGE UNDER THIS PROGRAM. All premiums are to be mailed to RISC, NOT the LREC.

*IMPORTANT NOTICE ABOUT GAPS BETWEEN POLICY PERIODS AND LOSS OF PRIOR ACTS COVERAGE: If you have a break between the end of one policy period and the beginning of the next, you will lose prior acts coverage. The group policy does not apply to claims concerning professional services performed before your retroactive date (the date from which you have maintained continuous real estate E&O insurance). Therefore, if you have a gap in coverage, you will lose any previously-established retroactive date and your new retroactive date will be the effective date of the new policy. The new policy will not apply to claims involving professional services performed prior to the new policy period, even if coverage was in place at the time of the professional services and again when the claim is made. A break in coverage while you have an active license also violates state law and may result in regulatory penalties and fines. To request to backdate coverage up to 90 days, use the Backdate Request Form. Even if your coverage is backdated to January 1, this procedure does not cure failure to comply with state law, so you may still be subject to state regulatory penalties and fines. Always pay your premium on time to avoid a break in coverage, protect yourself from uncovered claims and avoid penalties and fines.

The program referenced herein is underwritten by Continental Casualty Company, a CNA insurance company. This information is for illustrative purposes only and is not a contract. It is intended to provide a general overview of the products and services offered. Only the applicable policy can provide the actual terms, coverages, amounts, conditions, and exclusions, which may be subject to change without notice. In the event of a claim, the nature and extent of coverage is determined based upon the claim’s facts, circumstances, and allegations and application of the relevant policy’s terms, conditions, and exclusions. The E&O program described herein is only available in Louisiana. CNA is a registered trademark of CNA Financial Corporation. Copyright © CNA. 2023 All rights reserved.

Why Choose RISC

Over $26.3 Million in defense costs and damages have been incurred by Continental Casualty Company (a CNA insurance company) on behalf of Louisiana licensees as of July 31, 2023 since 2003. RISC and the carrier share a commitment to their insureds to provide valuable coverage to Louisiana licensees. When shopping for insurance, it’s important to ask about the company’s experience and paid Louisiana claims. If a company is charging a very low amount, you may find the carrier doesn’t provide much coverage or pay many claims. Remember, even frivolous claims can result in thousands of dollars in defense costs.

Experience – The Rice family and their colleagues have specialized in state-mandated real estate E&O programs since 1989. We provide the group policies in all 15 states that have group programs and require real estate licensees to maintain insurance.

Consistency – We handle all aspects of the program, providing ease and consistency throughout the entire process, from providing information about the policy to claims resolution. With other providers, you may have to contact different companies for different issues, such as purchasing coverage and reporting claims.

Customer Service – We pride ourselves on excellent customer service and the positive remarks we receive from insureds, regulators, educators, attorneys, and others.

Claims Handling – Even if you don’t think a claim will be made against you, how a company responds when a claim is made is important, because anyone can be the victim of a frivolous claim or make an honest mistake. Some people assume insurance companies look for reasons to deny coverage. Our duty to find coverage where the policy supports it is our utmost concern.

Our adjusters specialize in real estate E&O claims. Being faced with a claim is often frustrating. Our adjusters handle each claim with knowledge and understanding.

Dedication – You can be confident we will be here for you after you purchase coverage. Unlike some providers, we won’t cancel your policy or refuse to renew your coverage simply because you have a claim. Even the most careful professional may make an honest mistake or be the victim of a frivolous claim, and we are here to help if it happens to you.

The program referenced herein is underwritten by Continental Casualty Company, a CNA insurance company. This information is for illustrative purposes only and is not a contract. It is intended to provide a general overview of the products and services offered. Only the applicable policy can provide the actual terms, coverages, amounts, conditions, and exclusions, which may be subject to change without notice. In the event of a claim, the nature and extent of coverage is determined based upon the claim’s facts, circumstances, and allegations and application of the relevant policy’s terms, conditions, and exclusions. The E&O program described herein is only available in Louisiana. CNA is a registered trademark of CNA Financial Corporation. Copyright © CNA. All rights reserved.

Pricing & Available Coverage

Limits of Liability, January 1, 2024 to January 1, 2025 – $142 + $7 LREC transaction fee
$100,000 per claim / $300,000 aggregate with $1,000 damage deductible.  (Only one deductible applies if a claim involves multiple licensees with the same firm.)

Monthly Proration (+$7 LREC transaction fee Not applicable for appraisers only)

• February – $130
• March – $118
• April – $107
• May – $95
• June – $83
• July – $71
• August – $59
• September – $57
• October – $36
• November – $24
• December – $12

ENHANCED Appraisal Endorsement – $250
Provides coverage up to policy limits for your real estate services as an active licensed certified general appraiser, certified residential appraiser, licensed residential appraiser, or trainee appraiser. As in the past, this endorsement is available to individuals (not firms) who hold both an active real estate license and an active appraisal license. ENHANCEMENT – This endorsement is now also available to individuals (not firm) who are actively licensed Louisiana real estate appraisers but do not also have an active real estate license.

• February – $229
• March – $208
• April – $187
• May – $167
• June – $146
• July – $125
• August – $104
• September – $83
• October – $62
• November – $42
• December – $21

Increased Limits Available – Available for additional premium
Increased limits available to individual (not firm) licensees in the amounts of:

• $250,000 per claim / $750,000 aggregate
• $500,000 per claim / $1,000,000 aggregate

Firm Excess Policies – Subject to underwriting approval
Firm excess policies (written by Continental Casualty Company) up to $3,000,000 limits available to firms whose licensees are all insured through the group program. In addition to traditional excess coverage, our excess program automatically includes these key features at no additional cost: (1) Environmental Hazards Claims Coverage sublimits of $100,000  per claim and in the aggregate for covered claims alleging failure to advise of the existence of pollutants, asbestos, radon, or lead and (2) Discrimination Claims Coverage sublimits of $100,000 per claim and in the aggregate for covered claims alleging discrimination in the performance or failure to perform professional services (this is in addition to the environmental and discrimination coverages provided in the underlying group program). All of the firm’s licensees must participate in the group program for the firm to qualify for an excess policy.

First Dollar Defense – Automatically included
Applies WITH NO CONDITIONS to all covered claims.

Unlimited Defense Costs – Automatically included
There is NO LIMIT on the amount of defense costs the carrier will pay in connection with claims covered under the basic policy.  (There are limits on defense costs under the discrimination and subpoena coverages and regulatory complaints endorsement, since these features are typically not offered for the standard program.)

Retroactive / Prior Acts Coverage – Automatically included
Insures prior transactions, provided you have maintained continuous real estate E&O insurance (from any provider) from the date of the professional services to the date the claim arises. Some policies do not apply to professional services performed while the insured was with a different carrier or associated with a different real estate firm.

Discrimination / Fair Housing Coverage – Automatically included
$25,000 per claim / $25,000 aggregate (damages and defense costs, combined).

Environmental Coverage – Automatically included
$10,000 per claim / $20,000 aggregate (damages) with no limit on defense costs.

Escrow / Earnest Money Coverage – Automatically included
$5,000 per claim / $10,000 aggregate (damages) with no limit on defense costs.

Expanded Definition of Professional Services – Automatically included
The definition of professional services includes (1) services that require a real estate license, including property management services; (2) broker price opinions / comparative market analyses; and (3) services performed or advice given (including as a notary public and as a real estate consultant or counselor) when done in connection with licensed activity.

Firm / Franchise Coverage – Automatically included
Real estate firm and franchisor included in the definition of insured for vicarious liability for a covered claim.

Lock Box Coverage – Automatically included
$5,000 per claim / $10,000 aggregate for property damage or loss of use of property arising out of use of a lock box in certain situations with no limit on defense costs.

Primary Residence Coverage – Automatically included
Provides coverage for the sale or listing for sale of the insured licensee’s primary residence, under certain conditions.

Property Management Coverage –Automatically included
Property management services are automatically included in the definition of professional services.

Regulatory Complaints Coverage – $25
$2,500 per regulatory complaint / $5,000 aggregate (defense costs). Available to individual (not firm) licensees.

Residential Personal Interest Coverage – $50
Provides coverage up to policy limits for claims relating to the sale or listing for sale of residential property (as defined in the endorsement) in which you have an ownership or financial interest, under certain conditions. Available to individual (not firm) licensees who have both an active Louisiana real estate license and an active Louisiana appraiser license.

Spousal Coverage – Automatically included
Licensee’s spouse or domestic partner considered an insured in certain situations.

Subpoena Coverage – Automatically included
$2,500 per subpoena / $2,500 aggregate (attorneys’ fees).

Security Breach Notification Coverage – Automatically included
Reimbursement up to $5,000 for costs incurred by your real estate firm to provide required notification to clients of a security breach when confidential commercial information or nonpublic personal information may have been disclosed or used in an unauthorized manner (up to a maximum of $10,000 per real estate firm, regardless of the number of licensees or incidents involved). This is not coverage for the licensee’s or licensee’s family’s personal identity theft risk, which is not a professional liability risk and which is usually offered to individuals by personal insurance policy providers and credit card companies.

Conformity for Other States that Require Real Estate E&O Insurance – $25
A conformity endorsement is only needed if you are actively licensed in another state that mandates E&O coverage. If you are domiciled in Louisiana and have an active real estate license in Louisiana and another state that requires real estate E&O insurance, you may purchase a conformity endorsement to conform your coverage under the Louisiana policy to meet the other state’s requirements for professional services performed in that state.

Territory – Subject to Policy Provisions
If you are domiciled in Louisiana (either actually domiciled or considered to be domiciled by the policy provisions), the policy will insure professional services provided anywhere in the world, provided you are duly licensed in the state where services were provided, and the services would require a real estate license had they been performed in Louisiana. If you are not actually domiciled in Louisiana or not considered to be domiciled in Louisiana under the policy provisions, the policy will only insure professional services rendered in Louisiana.

The program referenced herein is underwritten by Continental Casualty Company, a CNA insurance company. This information is for illustrative purposes only and is not a contract. It is intended to provide a general overview of the products and services offered. Only the applicable policy can provide the actual terms, coverages, amounts, conditions, and exclusions, which may be subject to change without notice. In the event of a claim, the nature and extent of coverage is determined based upon the claim’s facts, circumstances, and allegations and application of the relevant policy’s terms, conditions, and exclusions. The E&O program described herein is only available in Louisiana. CNA is a registered trademark of CNA Financial Corporation. Copyright © CNA. All rights reserved.

Comparing Policies: What to Consider

What to Consider When Selecting an E&O Policy

Always Review the Actual Policy Provisions – The most accurate representation of what a policy covers is the policy itself. Some questions you might want to consider:

Does the basic policy provide first dollar defense?

RISC: Yes. There is no deductible for defense costs.

WATCH OUT FOR: Stringent requirements that must be followed to qualify for first dollar defense.

Does the basic policy offer unlimited defense costs?

RISC: Yes. There is no limit on the amount of defense costs under the basic policy (defense costs are limited under the regulatory complaints and subpoena assistance coverages, which were not traditionally covered at all under most traditional E&O policies).

WATCH OUT FOR: Caps on the amount of defense costs an insurer will pay.

Does the basic policy insure transactions you do for relatives?

RISC: Yes. Our group policy applies to claims involving services performed for your and your spouse’s relatives. This is important since buyers and seller often rely on a trusted relative with a real estate license.

WATCH OUT FOR: Policies that exclude coverage for claims arising from transactions involving your or your spouse’s relatives.

Does the policy insure claims relating to all types of real property?

RISC: Yes. Our policy insures claims relating to professional services, regardless of the type of property involved.

WATCH OUT FOR: Limits on the type of property coverage applies to or additional premium for property other than residential. Even if you currently handle only residential transactions, consider whether you are willing to forgo an opportunity to work with commercial property or farmland or to risk not having coverage for a claim resulting from the transaction.

Does the policy insure your firm for its vicarious liability for your professional services?

RISC: Yes. Our policy insures covered claims alleging your firm’s vicarious liability for negligence in your professional services.

WATCH OUT FOR: Policies issued to individual licensees that do not provide coverage for the firm’s vicarious liability for the licensee’s actions, which may leave the firm uncovered in the event of a claim.

Are insureds satisfied with the provider’s service?

RISC: Yes.  Excerpts from actual emails we’ve received:

[Your employee’s] hard work and long hours were particularly appreciated as evidence of my E&O coverage afforded me the opportunity to garner a new client this morning.  But for [your employee’s] dedication, I would not have been able to close the deal.  D.B. (Louisiana insured)

[T]he service Rice provides is bar none, and I must say that in my years of doing real estate, I have yet to see any insurance company offer what Rice does as far as quality service and professionalism in the industry. You have definitely set the bar, and it is such a pleasure to work and do business with friendly, service-oriented professionals such as you and [your staff].  T.G. (Louisiana insured)

WATCH OUT FOR: Insurance providers who do not consider you their top priority.

The program referenced herein is underwritten by Continental Casualty Company, a CNA insurance company. This information is for illustrative purposes only and is not a contract. It is intended to provide a general overview of the products and services offered. Only the applicable policy can provide the actual terms, coverages, amounts, conditions, and exclusions, which may be subject to change without notice. In the event of a claim, the nature and extent of coverage is determined based upon the claim’s facts, circumstances, and allegations and application of the relevant policy’s terms, conditions, and exclusions. The E&O program described herein is only available in Louisiana. CNA is a registered trademark of CNA Financial Corporation. Copyright © CNA. All rights reserved.