LAC 46:XL.127. Insurance

A. All active, licensed home inspectors shall carry errors and omissions insurance as well as general liability insurance. 1. The LSBHI will establish and/or approve an association or associations for the purposes of availing its licensees to the benefits of group insurance rates. The board shall establish the terms and conditions of coverage, including but not limited to the permissible deductibles and permissible exemptions. Licensees shall have the option of obtaining insurance independently of the approved association or associations that complies with the coverage requirements established by the board. 2. Each licensee shall be notified of the required terms and conditions of coverage for the annual policy at least 30 days prior to the annual renewal date. If the required terms and conditions have not been modified from the previous year’s policy, the terms and conditions for the previous year shall apply and the licensee shall not be so notified. B. Each licensee shall file with the board a certificate of coverage showing compliance with the required terms and conditions of insurance coverage by the inspector’s annual license renewal date. The home inspector shall identify the LSBHI as a certificate holder with the inspector’s insurance company. The certificate, notice of cancellation, renewal or suspension shall be provided to the board directly by the insurance company. C. Insurance coverage requirements are as follows: 1. errors and omissions insurance: a. minimum coverage $300,000 per year; b. maximum deductible $5,000; 2. general liability insurance: a. minimum coverage $300,000 per year; b. maximum deductible $5,000. D. Every licensee shall provide to his clients or the board's representatives proof of all insurance in force upon request. E. Upon cancellation of any insurance where a gap in coverage may occur, the licensee shall immediately inform the board and cease performing home inspections. When replacement coverage is obtained, evidence shall be immediately transmitted to the board in accordance with §127.B. F. Failure to maintain insurance is grounds for license revocation, non-renewal or other disciplinary action.