Specializing in Mandated Real Estate Errors & Omissions Insurance
• We put the Experience and Options in E&O programs •
*NOTE: For information about
licensing please contact KREC at
Kentucky Real Estate Commission
Limits of Liability:
ACTIVE Kentucky real estate licensees (brokers and salespersons) must, as a condition of licensing, carry and maintain errors and omissions (E&O) insurance to cover all activities under their real estate license. INACTIVE licensees are not required to have E&O insurance. However, licensees with expiring policies who not renewing their coverage for any reason, including going inactive, may want to purchase an optional extended reporting period endorsement (see extended coverage information on web site).
Licensees may purchase insurance through the Kentucky Real Estate Commission’s (the “Commission’s”) group policy. Licensees may also obtain E&O insurance outside of the group program, provided the coverage complies with the minimum requirements established by the Commission and the licensee files a certificate of coverage with the Commission in compliance with K.R.S. § 324.395 (6).
Upon application for issuance or renewal of an active license, you must purchase insurance through the group policy or certify that you are in compliance with Kentucky’s real estate E&O insurance requirements. Active licensees will receive information regarding enrollment for the group program in the license renewal packet from the Commission.
Enrolling in the Group Program: Rice Insurance Services Company, LLC (RISC) has an agreement with the Commission to provide its policy to Kentucky licensees. Continental Casualty Company, a CNA insurance company, is the insurance carrier for the program. RISC’s experience and excellent claims service (specializing in real estate E&O), combined with CNA’s strong financial performance and ratings (rated “A” by A.M. Best), will provide a quality program for Kentucky licensees.
It is easy to enroll in the group program when you renew your real estate license online with the Commission. Simply select “Yes” in response to the question “Do you wish to use Commission Group E&O Insurance?” We will send you a certificate of coverage after we receive a list of enrolled licensees from the Commission.
If you wish to enroll in the group program, the one‑year premium is $116 per licensee plus, applicable tax and surcharge. Licensees purchasing coverage with an inception date after April 30, 2013 may pay a prorated premium. Late premium payments may cause a break in coverage and/or noncompliance with the state law.
Increased Limits Available: Licensees may purchase an endorsement to increase their per claim limit of liability to $250,000 or $500,000, with a $1,000,000 aggregate. Information about increased limits and other optional endorsements is available on our website by selecting the “Enroll or Renew” button and then the “Supplementary Enrollment Form for Optional Endorsements.”
Additionally, we offer firm excess policies with limits of liability of $500,000 and $1,000,000. Information about firm excess policies is available on our website under “Excess Coverage.” All of the firm’s licensees must participate in the group program for the firm to qualify for an excess policy. The firm’s principal broker or officer must complete an excess application form to obtain a quote for a firm excess policy. Contact our office to obtain an excess application form.
Kentucky Service for Kentucky Licensees: RISC is located in Louisville, Kentucky and will provide the servicing (claims handling, policy issuance, marketing mailings, etc.) for the group program. The RISC’s Kentucky-based management team specializes in handling programs in states with mandatory real estate E&O insurance requirements.
Any questions about the group program should be directed to RISC. You may visit our website at www.risceo.com; call us at 800-637-7319, Ext. 1; or write to us at Post Office Box 6709, Louisville, Kentucky 40206-0709. RISC looks forward to hearing from Kentucky Licensees and working with each and every one of you.CNA is a service mark and trade name registered with the US Patent and Trademark Office. The program referenced herein is underwritten by Continental Casualty Company, one of the CNA insurance companies. 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, coverages, amounts, conditions, and exclusions. This program is only available in Kentucky. ©2013