What Real Estate Brokers in Louisiana Need to Know About Errors & Omissions Insurance

What Is Errors & Omissions Insurance?

Errors & Omissions (E&O) insurance helps cover legal fees and damages if you're accused of making a mistake or leaving something out in a professional service. For real estate brokers and agents, this could include incorrect disclosures, miscommunication during a transaction, or even perceived advice that leads to financial loss.

In a fast-paced field where deals happen quickly and clients rely on your expertise, E&O coverage acts as your financial safety net.

Why It's Important for Real Estate Professionals

Real estate transactions are detailed and emotionally charged. Clients are investing a lot—sometimes their life savings. That pressure means even a small oversight can become a major issue.

Miscommunication Happens

Even with contracts and disclaimers, misunderstandings can happen. If a buyer believes you didn’t disclose something important—even if you did—you might face a lawsuit.

Legal Fees Are Expensive

Defending yourself in court, even for a claim that turns out to be baseless, can cost thousands. E&O helps with attorney fees, settlements, and other related costs.

Your Reputation Matters

Having E&O coverage in place shows clients and partners that you take your responsibilities seriously. It helps protect your name while also covering the financial burden of a claim.

What Does E&O Insurance Cover?

E&O insurance typically covers:

• Professional mistakes or oversights

• Misrepresentation (even if unintentional)

• Breach of duty

• Missed deadlines or paperwork errors

• Failure to disclose important facts

What It Doesn’t Cover

It’s not a catch-all. E&O won’t help with:

• Intentional fraud or criminal activity

• Physical injuries or property damage (that’s general liability)

• Employment disputes (that’s EPLI)

• Damaged business property (that’s commercial property insurance)

Tailoring Coverage for Louisiana Real Estate Firms

The legal and real estate environments in Louisiana are unique. There are different rules on title transfers, flood zones, and property disclosures. That’s why it’s important to work with an insurance advisor who understands Louisiana-specific risks.

Who Needs This Type of Coverage?

If you’re a real estate broker, independent agent, or manage a real estate office, E&O isn’t optional—it’s part of doing business responsibly. Even newly licensed agents should consider it. No matter your experience, all it takes is one upset client to find yourself in court.

What to Look for in a Policy

When shopping for an E&O policy, pay attention to:

• Claims-made vs. occurrence policies: Claims-made policies only cover claims made while the policy is active. Occurrence policies are less common but may offer broader peace of mind.

• Coverage limits: Make sure your limit is high enough to cover worst-case scenarios.

• Deductible amounts: A lower deductible might mean a higher premium—but it also means less out-of-pocket if something goes wrong.

Why Partnering With Kastner Makes Sense

At Kastner Insurance, we understand the legal, financial, and emotional toll a claim can take. We work with brokers and agents throughout Southern Louisiana—whether you're based in Baton Rouge, Lafayette, or anywhere in between.

Our independent agency model means we’re not tied to one carrier. We find the best fit for your needs, and we adjust coverage as your business grows.

Real Protection for Real Professionals

Your clients trust you to guide them through major life decisions. E&O insurance is what helps you stay focused on delivering great service—without the fear that one bad transaction could ruin everything.

If you're unsure whether your current policy is strong enough—or if you're just getting started—we're here to help.