Specializing in Mandated Real Estate Errors & Omissions Insurance
ē We put the Experience and Options in E&O programs ē
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Insurance Services Company, LLC
Tennessee Real Estate Commissionís Group Policy
Real Estate E&O Insurance
Important Changes to TRECís E&O Rules
There are new mandatory penalties for failure to renew coverage by December 31, 2014, pursuant to laws (TN Code Ann. ß 62-13-112 and Rule No. 1260-01-.16) that went into effect in 2014. Failure to timely renew coverage will now result in license suspension and may result in fines in excess of $1,000. Additionally, principal brokers who fail to ensure their affiliate brokers maintain insurance will be disciplined with a civil penalty up to $1,000 per uninsured affiliate broker.
Please Support Your State Program
Over $21.5 Million in defense costs and damages have been incurred as of September 30, 2014 since RISC began administering the Tennessee state group program in 2001. RISC and the carrier share a commitment to their insureds and providing valuable coverage to Tennessee licensees. When shopping for insurance coverage itís important to ask about the companyís experience and paid claims in Tennessee. If a company is charging a very low amount, you may find out the carrier doesnít provide much coverage or pay many claims.
The state group program offers affordable E&O insurance to each and every licensee by spreading the risk over a large number of insureds. Without the group programís low premium, other carriers have no incentive to offer real estate E&O policies at affordable prices. In states without a group program, real estate E&O premiums may cost thousands of dollars and some licensees report being unable to obtain insurance at any price.
Rely on the Most Experienced Provider in the Business
The Rice family and their colleagues have specialized in mandated real estate E&O programs since 1989. We provide group policies in 11 of the 13 states that have group programs and require licensees to maintain insurance. CNA has more than 50 years of experience in E&O programs, including over 20 years in real estate E&O. CNA is the top provider of real estate liability insurance, delivering more than 100 years of experience, industry knowledge, and financial strength to manage even the most complex risks. You can be confident we will be here for you even after you purchase coverage.
When a Claim is Made, Our Claims Adjusters Focus on You
Some people assume insurance companies look for reasons to deny coverage. Our duty to find coverage where the policy supports it is our utmost concern. Most insurance providers use one entity to sell the policy and another to handle claims. Because we do both, the information we provide about the policy reflects how it will actually apply in the event of a claim. Providers who donít administer claims may not know how the carrier actually applies the policy when a claim is made.
We Stand by You Even if there is a Claim
You may be involved in a claim even if you did everything by the book. Some providers wonít write your coverage if you have had a claim. Or if you have a claim, they may not renew your policy! There is no need to fear reporting a claim under our program. We understand that having a claim does not mean that you did anything wrong. Anyone can be involved in a transaction that goes sour. Never think that it canít happen to you. And we are here to help you if it does.
Call us at 1-800-637-7319. We look forward to hearing from you.
Enrollment for the
Click the "Enroll or Renew" Button on the left for more information.
Not All E&O Providers are the Same . . .
Always Review the Actual Policy Provisions!
The most accurate representation of what a policy covers is the policy itself. We recommend that you review any policy you are considering and ask these questions.
Does the policy provide first dollar defense? Yes. There is no deductible for defense costs. Other policies may have stringent requirements that must be followed to qualify for first dollar defense.
Does the policy offer unlimited defense costs? Yes. There is no limit on the amount of defense costs under the basic policy (defense costs are limited under the discrimination and escrow sublimits; however, traditional E&O policies provide no coverage at all for these claims).
Does the policy insure transactions you do for relatives? Yes. The RISC policy applies to claims involving services performed for your parents; grandparents; siblings; aunts; uncles; cousins; children; or your spouseís parents, grandparents, siblings, or children. This is important, since buyers and sellers often turn to a trusted relative who is a real estate licensee to represent them in a transaction.
Does the policy apply to claims relating to all types of real property? Yes. The RISC policy applies to any claim relating to professional services, regardless of the type of property involved. Other policies may limit coverage to a specific type of property, such as residential, or require additional premium for coverage for other kinds of property. Even if you currently handle only residential transactions, consider whether you are willing to forgo an opportunity to work with commercial property or farm land or to risk not having coverage for a claim resulting from the transaction.
Does the policy insure your firm for its vicarious liability for your professional services? Yes. Claims are often made against real estate firms as a result of their licenseesí negligence. Under the group program, the policy applies to covered claims alleging the firmís vicarious liability for negligence in the insured licenseeís professional services. Some policies issued to individual licensees may not provide coverage for the firmís vicarious liability for their actions, which may leave the firm uncovered in the event of a claim.
Does the policy allow you a voice in choosing an attorney? Yes. The group policy provides that defense counsel must be mutually agreeable to the insured and the carrier, so the carrier cannot assign an attorney you do not agree to represent you in a covered claim.
Are Insureds satisfied with the providerís service? Yes. Below are excerpts from actual emails we have received:
I very much appreciate your support. Every experience Iíve ever had with Rice has been positive. You all are great to work with. J.S. (TN licensee)
I just didnít realize, especially these days, how many [people] are out there who can AND WILL bring suit against us even when we have done everything right, legal and proper. It is frightening, so I thank God for E&O insurance, RISC, and for the [attorney you retained to represent me]. N.G. (TN licensee)
I canít thank you enough for your support and backing during this 4 Ĺ year ordeal. Mostly I canít tell you how grateful I am that you provided me such an able, dynamic young attorney . . . . [W]eíve prevailed in this major portion of the lawsuit. [I]tís not only because you had an innocent insured but that [defense counsel] was able to convince the jury of our innocence. C.V. (TN licensee)
Whatís the premium for excellent customer service and individual attention when you need it?
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
applicable policy can provide the actual terms, coverages,
amounts, conditions, and exclusions, which may be subject to
change without notice. In the event of a claim, the nature and
extent of coverage is determined based upon the claimís facts,
circumstances, and allegations and application of the relevant
policyís terms, conditions, and exclusions. The E&O program
described herein is only available in Tennessee. CNA is a
registered trademark of CNA Financial Corporation. Copyright ©
2014 CNA. All rights reserved.
Insurance Services Company, LLC