Idaho Real Estate Licensee
Errors & Omissions Insurance
Group Program

 Overview

Idaho law requires all active Idaho real estate licensees, including corporations, limited liability companies, and partnerships, to carry and maintain errors and omissions (E&O) insurance (firm policies are not required for sole proprietorships).  New licensees must obtain E&O insurance before license activation.  Inactive licensees are not required to have E&O insurance; however, the policy does not cover claims made after the expiration of the policy or any applicable extended reporting period, so licensees who are not renewing may be interested in an optional extended reporting period endorsement, explained further under the “Extended Reporting” tab to the left.   

The IREC may inactivate your license and assess penalties and fines up to $5,000 if you do not obtain or renew coverage for the October 1, 2012 to October 1, 2013 period by 11:59:59 p.m. MDT on September 30, 2012. 

To ensure Idaho licensees are able to comply with the insurance requirement, the Idaho Real Estate Commission (IREC) contracted with Rice Insurance Services Company, LLC (RISC) to provide a group E&O insurance policy.  RISC will provide all servicing for the program, including claims handling, policy issuance, marketing, and mailings.  RISC’s management team specializes in insurance programs for states that require real estate E&O insurance and has administered the IREC’s group program since 1993.  Continental Casualty Company, a CNA* insurance company, is the insurance carrier for the program.  CNA is rated “A (Excellent)” by A.M. Best. 

The group program is designed exclusively to meet the needs of Idaho licensees.  It helps protect real estate professionals and the public from the financial consequences of covered claims arising from negligent acts, errors, and omissions in licensed professional services.  Even the most careful professional cannot always prevent the filing of a frivolous lawsuit or avoid making an honest mistake.  Under the group policy, the insurance carrier is responsible for defending covered claims, as well as paying covered damages in connection with a settlement or judgment of a covered claim, up to the applicable limits of liability and subject to the deductible.

Eligibility:  You must hold an active license issued by the IREC or be applying for such a license to be eligible to purchase insurance through the group policy. 

Important Notice to Nonresident Licensees:

• Licensees who are actually domiciled in Idaho or considered to be domiciled in Idaho under the terms of the policy will be insured for professional services performed anywhere, provided (1) the licensee is duly licensed where the services were provided and (2) the services would require a license under Idaho law had they been performed in Idaho.

• Licensees who are not actually domiciled in Idaho or considered to be domiciled in Idaho under the terms of the policy will only be insured for professional services performed in Idaho.

• Licensees who are not actually domiciled in Idaho may be considered domiciled there if (1) he/she resides within 50 miles of the Idaho state line and (2) the license under which the majority of the licensee’s real estate transactions are performed is affiliated with an Idaho real estate office.

• If you are not domiciled in Idaho or if you are licensed in more than one state, contact us at (800) 637-7319, ext. 1 for additional information.

*CNA is a service mark and trade name registered with the US Patent and Trade Office.  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 policy can provide the actual terms, coverage, amounts, conditions, and exclusions.  This insurance is only available in Idaho.  A sample policy is available on this website or by request.  © 2012