Tina ran a busy real estate brokerage in Lafayette, Louisiana. Her agents were always on the go—showing properties, hosting open houses, and meeting with clients. But one Friday night, a pipe burst in the office building above hers. By Saturday morning, her entire office was flooded. Computers were damaged, furniture was ruined, and most of all—her agents had nowhere to work.
Tina had commercial property insurance, which helped cover the cost of repairs and equipment replacement. But what it didn’t help with? The weeks of lost income while the office was out of commission. The delay in closing deals. The clients lost to competitors who didn’t miss a beat.
That’s when Tina learned about business interruption insurance—the missing piece of her coverage puzzle.
Business interruption insurance helps cover lost income and operating expenses when your business is forced to temporarily shut down due to a covered event, like fire, water damage, or storm-related destruction.
For real estate firms, which depend on a functional office space, uninterrupted technology access, and face-to-face meetings, even a few days of closure can lead to missed opportunities and lost revenue.
Louisiana real estate offices face unique risks. From hurricanes and heavy rain to infrastructure challenges and unpredictable power outages, the chance of operational disruption is very real.
Unlike other industries, real estate doesn’t just rely on a storefront—it depends on seamless access to MLS tools, client files, phones, and meeting space. If your agents can’t meet with clients, process contracts, or close deals, revenue disappears fast.
Business interruption insurance usually covers:
Lost income based on previous financial records
Rent or mortgage payments for your office
Utility bills and employee wages
Relocation costs if you need a temporary office
Taxes and loan payments that continue even while closed
This coverage kicks in after a covered property loss forces your firm to temporarily cease operations. It’s meant to help you “keep the lights on,” even when your doors are shut.
Imagine a storm knocks out power for a week, or a tree crashes into your building. While your commercial property policy might pay for physical damage, it doesn’t help you make up for the income you’re not earning while business is paused.
Business interruption coverage bridges that gap. It turns a total financial loss into a manageable disruption—and could mean the difference between bouncing back or going under.
That depends on your policy’s restoration period. Most business interruption policies cover income loss during the time it takes to repair the business and reopen—whether that’s days, weeks, or even months. It's important to review this timeline with your insurance agent to make sure your coverage matches your risk.
“I work from home most of the time—do I really need this?”
Even if you use a hybrid model, most real estate firms still rely on a central office for collaboration, client meetings, or equipment storage. Losing access to that space can still impact your bottom line.
“I already have commercial property insurance.”
That’s great—but commercial property coverage handles the physical damages. Business interruption insurance takes care of the financial fallout from being closed.
“My firm is too small for this coverage.”
Smaller firms can be hit hardest by unexpected shutdowns. With tighter margins and fewer backup resources, losing even a few deals can put you in a tough spot.
Assess Your Risk
Think about your physical office setup, what kind of weather and infrastructure risks are common in your area, and how long your firm could operate without full access to your office.
Talk to an Experienced Agent
A knowledgeable insurance partner (like Kastner Insurance) can help you calculate your average income, estimate potential downtime losses, and build a policy that fits your firm’s needs.
Review Annually
As your team grows or your location changes, your business interruption coverage may need to adjust too. It should grow alongside your business.
Tina thought her insurance plan was solid—until a soaked ceiling proved otherwise. Business interruption insurance isn’t just for retail shops or restaurants. It’s an important part of protecting real estate brokerages across Louisiana.
If you’d like help reviewing or building your insurance plan—including coverage for income disruptions—Kastner Insurance is here to walk you through it.
We help real estate firms in Lafayette, Baton Rouge, New Orleans, and beyond stay prepared for the unexpected.
Founded in 2017, Kastner Insurance Group is a full-service, independent insurance broker based in Lafayette, LA. Our insurance agents specialize in offering a variety of insurance products tailored to individual and commercial needs, making sure clients receive personalized and comprehensive coverage options from a variety of insurance companies/insurance carriers.
With over 43 years of combined experience, the team at Kastner Insurance Group is dedicated to providing expert advice and exceptional service. They proudly serve professional offices and businesses across Lafayette city/parish, Youngsville, Broussard, Baton Rouge, New Orleans, Alexandria, Acadiana, and statewide in Louisiana.
Call us today or visit our website for a customized quote.
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