New Mandatory Louisiana Home Service Contract Provider Bond

home service contract

Louisiana home service contract providers must adhere to several new regulations, effective January 11, 2016Senate Bill 152 was introduced to create a registry of providers, encourage innovation and promote competition among providers. It will also move regulation of providers from the Department of Insurance to the Louisiana State Licensing Board for Contractors (LSLBC).

Home service contract providers offer contracts covering the service, replacement or repair of existing household appliances or systems due to normal wear and tear. They differ from insurance in that insurance does not cover wear and tear. They do not provide coverage for accidents or unpredictable events and are not a substitute for homeowners insurance. Home service contracts typically provide one year of coverage.

SB 152 includes a provision requiring the purchase of a surety bond. Home service contract providers must purchase a $50,000 bond and file it with the LSLBC. The bond ensures providers will fulfill all contractual obligations to their clients.

The bill will require home service contract providers to register with the LSLBC. They must provide the following information:

  • provider’s name, address, phone number and contact person
  • designated person in the state for service of process
  • list of all officers, directors and owners of more than 10% of the business
  • copies of basic organizational documents
  • $600 registration fee

Registration is effective for two years. Providers should renew their registration 90 days before its expiration, accompanied by a $250 renewal fee.

The bill also includes specific information that must be included in every home service contract, including the statement “This agreement is not an insurance contract.” Providers must not misrepresent themselves as insurance, casualty or surety providers.

A current bond form is available here. The form is subject to change as the regulation of home service contract providers switches departments.

Contact the LSLCB or the Department of Insurance for more information about SB 152. can help you get bonded in Louisiana quickly, easily and accurately.

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About the Author

Melanie Baravik
Melanie is a senior at the University of Missouri - Columbia studying English with an emphasis in creative writing. She is a member of the marketing department and outreach team for, a leading provider of online bonding for clients nationwide.