Idaho Real Estate Commission’s Group Policy

Real Estate E&O Insurance Designed for Idaho Licensees

Enrollment for October 1, 2023 to October 1, 2024 Policy Period is NOW AVAILABLE!
Click Enroll or Renew on the left for more information.

Idaho Real Estate Licensee Errors & Omissions Insurance Group Program

The Idaho Real Estate Commission selected RISC to provide the state group E&O insurance policy, which is issued by Continental Casualty Company, a CNA insurance company.  The program is designed specifically for Idaho licensees and exceeds state minimum requirements.  The state group program offers affordable E&O insurance to each and every active licensee by spreading the risk over a large number of insureds.  Without the group program’s 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.

IMPORTANT NOTICE:
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 claim’s facts, circumstances, and allegations and application of the relevant policy’s terms, conditions, and exclusions. The E&O program described herein is only available in Idaho. CNA is a registered trademark of CNA Financial Corporation. Copyright © CNA. All rights reserved.

Sample Policies and Endorsements

1. 2023 Sample Policy

2. 2023 Optional Coverages

3. 2023 Policy Features Flyer

4. Claims

5. Excess Coverage

Enroll or Renew

Thank you for considering our program. If you have questions about the program or how to purchase coverage, feel free to contact us or view our frequently asked questions. Please note we CANNOT accept any payment information over the phone.

NOTICE: This policy is a CLAIMS-MADE-AND-REPORTED policy and subject to its provisions, applies only to a claim first made against the insured and first reported to the insurance company during the individual policy period. No coverage exists for claims first made before or after the individual policy period unless, and to the extent, an extended reporting period applies.

October 1, 2023 to October 1, 2024 Policy Period – Online Enrollment NOW AVAILABLE!

IMPORTANT NOTICE: Active status Idaho real estate licensees who fail to renew E&O insurance by September 30, 2023 at 11:59:59 p.m. MT will be in violation of the license law and will incur civil penalties and fines. In addition to violating state law and incurring fines and penalties, failure to enroll by September 30, 2023 at 11:59:59 p.m. MT may cause you to lose coverage for prior acts, a valuable feature of the policy.  Even a one-day gap will result in loss of coverage for any services provided before and through the last day of the gap, even if insurance was in place at the time of the services. Always pay your premium on time to protect against uncovered claims, fines, and penalties.

Enroll Online: Please Note that we now have a new online enrollment system. Unless you have made a purchase online since this site went live on October 3, 2016 you DO NOT have a login.

Enroll by Mail: Mail your completed form with applicable premium by check or money order (payable to RISC) to either address below:

Individual Licensee Coverage:

• Individual Enrollment Form – Enrollment Form: Purchase coverage to be effective October 1*
• Prorated Enrollment Form: Purchase prorated coverage to be effective after October 1*
• Endorsement Request Form:  Request to add an endorsement to an individual policy (not firm) policy if you already have insurance through the group policy.  (If you have not yet purchased insurance through the group policy, you can purchase endorsements during enrollment.)

Firm Licensee Coverage:

• Firm Enrollment Form – Enrollment Form: Purchase coverage to be effective October 1*
• Prorated Enrollment Form: Purchase prorated coverage to be effective after October 1*

*IMPORTANT NOTICE ABOUT GAPS BETWEEN POLICY PERIODS AND LOSS OF PRIOR ACTS COVERAGE: If you have a break between the end of one policy period and the beginning of the next, you will lose prior acts coverage. The group policy does not apply to claims concerning professional services performed before your retroactive date (the date from which you have maintained continuous real estate E&O insurance). Therefore, if you have a gap in coverage, you will lose any previously-established retroactive date and your new retroactive date will be the effective date of the new policy. The new policy will not apply to claims involving professional services performed prior to the new policy period, even if coverage was in place at the time of the professional services and again when the claim is made. A break in coverage while you have an active license also violates state law and may result in regulatory penalties and fines. To request to backdate coverage up to 90 days, use the Backdate Request Form. Even if your coverage is backdated to October 1, this procedure does not cure failure to comply with state law, so you may still be subject to state regulatory penalties and fines. Always pay your premium on time to avoid a break in coverage, protect yourself from uncovered claims and avoid penalties and fines.

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 claim’s facts, circumstances, and allegations and application of the relevant policy’s terms, conditions, and exclusions. The E&O program described herein is only available in Idaho. CNA is a registered trademark of CNA Financial Corporation. Copyright © CNA. All rights reserved.

Why Choose RISC

Over $9 Million in defense costs and damages have been incurred by Continental Casualty Company (a CNA insurance company) on behalf of Idaho licensees as of May 31, 2022 since 2004. RISC and the carrier share a commitment their insureds to provide valuable coverage to Idaho licensees. When shopping for insurance, it’s important to ask about the company’s experience and paid Idaho claims. If a company is charging a very low amount, you may find the carrier doesn’t provide much coverage or pay many claims. Remember, even frivolous claims can result in thousands of dollars in defense costs.

Experience – The Rice family and their colleagues have specialized in state-mandated real estate E&O programs since 1989. We provide the group policies in 15 states that have group programs and require real estate licensees to maintain insurance.

Consistency – We handle all aspects of the program, providing ease and consistency throughout the entire process, from obtaining coverage to claims resolution. With other providers, you may have to contact different companies for different issues, such as purchasing coverage and reporting claims.

Customer Service – We pride ourselves on excellent customer service and the positive remarks we receive from insureds, regulators, educators, attorneys, and others.

Claims Handling – Even if you don’t think a claim will be made against you, how a company responds when a claim is made is important, because anyone can be the victim of a frivolous claim or make an honest mistake. 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.

Our adjusters specialize in real estate E&O claims. Being faced with a claim is often frustrating. Our adjusters handle each claim with knowledge and understanding.

Dedication – You can be confident we will be here for you after you purchase coverage. Unlike some providers, we won’t cancel your policy or refuse to renew your coverage simply because you have a claim. Even the most careful professional may make an honest mistake or be the victim of a frivolous claim, and we are here to help if it happens to you.

IMPORTANT NOTICE:
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 claim’s facts, circumstances, and allegations and application of the relevant policy’s terms, conditions, and exclusions. The E&O program described herein is only available in Idaho. CNA is a registered trademark of CNA Financial Corporation. Copyright © CNA. All rights reserved.

Pricing & Available Coverage

Limits of Liability- $155
$100,000 per claim / $300,000 aggregate with $1,000 damage deductible.  (Only one deductible applies if a claim involves multiple licensees with the same firm.)

• November 2023 – $142
• December 2023 – $129
• January 2024 – $116
• February 2024 – $103
• March 2024 – $90
• April 2024 – $78
• May 2024 – $65
• June 2024 – $52
• July 2024 – $39
• August 2024 – $26
• September 2024 – $13

Increased Limits Available
Increased limits available to individual (not firm) licensees in the amounts of:

• $250,000 per claim / $500,000 aggregate  – $112
• $500,000 per claim / $1,000,000 aggregate – $251

Firm Excess Policies- Subject to underwriting approval
Firm excess policies (written by Continental Casualty Company) up to $3,000,000 limits are available to firms whose licensees are all insured through the group program. All of the firm’s licensees must participate in the group program for the firm to qualify for an excess policy.

First Dollar Defense- Automatically included
Applies WITH NO CONDITIONS to all covered claims.

Unlimited Defense Costs- Automatically included
There is NO LIMIT on the amount of defense costs the carrier will pay in connection with claims covered under the basic policy limits or the lock box sublimits. (There are limits on defense costs under the earnest money, environmental, fair housing (automatic and optional), and regulatory complaints endorsements, since those features are typically not offered for the standard program.)

Firm / Team / Franchise Coverage- Automatically included
Real estate firm, real estate team, and real estate franchisor included in the definition of insured for vicarious liability for covered claims.

Retroactive / Prior Acts Coverage- Automatically included
Insures prior transactions, provided you have maintained continuous real estate E&O insurance (from any provider) from the date of the professional services to the date the claim arises. Some policies do not apply to professional services performed while the insured was with a different carrier or associated with a different real estate firm.

Discrimination /Fair Housing Coverage- Automatically Included
$25,000 per claim / $25,000 aggregate with unlimited defense costs.

Escrow / Earnest Money Coverage- Automatically Included
$5,000 per escrow claim/ $10,000 aggregate with unlimited defense costs.

Environmental Endorsements- Automatically Included
$10,000 per claim / $20,000 aggregate with unlimited defense costs.

Lock Box Coverage- Automatically included
$5,000 per claim / $10,000 aggregate for property damage or loss of use of property arising out of use of a lock box in certain situations (no defense coverage).

Primary Residence Coverage- Automatically Included
Provides coverage for the sale or listing for sale of the insured licensee’s primary residence, under certain conditions.

Regulatory Complaints Coverage- Automatically Included
$2,500 per regulatory complaint / $5,000 aggregate (defense costs).

Security Breach Coverage- Automatically Included
Up to $5,000 for costs incurred by the licensee’s firm if it is required to notify clients of a security breach when confidential commercial information or nonpublic personal information my have been disclosed or used in an unauthorized manner. Maximum limit of $5,000 per real estate firm, regardless of the number of licensees or incidents involved.

Spousal Coverage- Automatically Included
Licensee’s spouse or domestic partner considered an insured in certain situations.

Subpoena Coverage- Automatically Included
$2,500 in attorney’s fees to represent the insured in connection with a covered subpoena.

Expanded Definition of Professional Services- Automatically included
In addition to services requiring an Idaho real estate license, insured professional services include leasing and property management, broker prince opinions, and services performed or advice given by the licensee, including as a notary public, and as a real estate consultant or counselor in connection with the services as a real estate licensee.

Appraisal Endorsement- $200
Up to policy limits available to active real estate licensees who also have active appraiser licenses, with no limitation on the amount of appraisal services provided.

Appraisal Trainee Endorsement- $200 per trainee
Adds specific appraiser trainees listed in the endorsement as insureds. (Must also purchase appraisal endorsement).

Developed/Constructed by Spouse Endorsement- $250
$100,000 per claims / $300,000 aggregate sublimits for claims involving the sale of residential property constructed or developed by the licensee’s spouse under certain conditions.

Residential Personal Interest Endorsement- $15
$100,000 per claims / $300,000 aggregate sublimits for claims involving the sale or listing for sale of residential property owned by the licensee, the licensee’s spouse, or a company owned by the licensee under certain conditions.

Conformity for Other States that Require Real Estate E&O Insurance- $15
A conformity endorsement is only needed if you are actively licensed in another state that mandates E&O coverage. If you are domiciled in Idaho and have an active real estate license in Idaho and another state that requires real estate E&O insurance, you may purchase a conformity endorsement to conform your coverage under the Idaho policy to meet the other state’s requirements for professional services performed in that state.

Territory- Subject to Policy Provisions
If you are domiciled in Idaho (either actually domiciled or considered to be domiciled by the policy provisions), the policy will insure professional services provided anywhere in the world, provided you are duly licensed in the state where services were provided, and the services would require a real estate license had they been performed in Idaho. If you are not actually domiciled in Idaho or not considered to be domiciled in Idaho under the policy provisions, the policy will only insure professional services rendered in Idaho.

IMPORTANT NOTICE:
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 claim’s facts, circumstances, and allegations and application of the relevant policy’s terms, conditions, and exclusions. The E&O program described herein is only available in Idaho. CNA is a registered trademark of CNA Financial Corporation. Copyright © CNA. All rights reserved.

Comparing Policies: What to Consider

What to Consider When Selecting an E&O Policy

Always Review the Actual Policy Provisions – The most accurate representation of what a policy covers is the policy itself. Some questions you might want to consider:

Does the basic policy provide first dollar defense?

RISC: Yes. There is no deductible for defense costs.

WATCH OUT FOR: Stringent requirements that must be followed to qualify for first dollar defense (defense costs are limited under the earnest money, environmental, fair housing, and regulatory complaints which were not traditionally covered at all under many E&O policies).

Does the basic policy offer unlimited defense costs?

RISC: 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).

WATCH OUT FOR: Caps on the amount of defense costs an insurer will pay.

Does the basic policy insure transactions you do for relatives?

RISC: Yes. Our group policy applies to claims involving services performed for your parents; grandparents; siblings; aunts; uncles; cousins; children; and your spouse’s parents, grandparents, siblings, and children.

WATCH OUT FOR: Policies that exclude coverage for claims arising from transactions involving parents; grandparents; siblings; aunts; uncles; cousins; children; or your spouse’s parents, grandparents, siblings, or children. This is important, since buyers and sellers often rely on a trusted relative with a real estate license.

Does the policy insure claims relating to all types of real property?

RISC: Yes. Our policy insures claims relating to professional services, regardless of the type of property involved.

WATCH OUT FOR: Limits on the type of property coverage applies to or additional premium for property other than residential. 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?

RISC: Yes. Our policy insures covered claims alleging your firm’s vicarious liability for negligence in your professional services.

WATCH OUT FOR: Policies issued to individual licensees that do not provide coverage for the firm’s vicarious liability for the licensee’s actions, which may leave the firm uncovered in the event of a claim.

Are insureds satisfied with the provider’s service?

RISC: Yes.  Below are excerpts from actual emails we’ve received:

Thank you, thank you, thank you. Your swift response only reinforces my faith in your coverage and service. R.F. (Idaho insured)

I want to express my thanks to you. When you are in this “situation” there are a number of emotions that seem overwhelming . . . . While I know we didn’t do anything wrong, I cannot tell you how appreciative I am of the service that you and RISC offer. Not only have you saved us but you have been so kind in your communications. . . . Also, I feel your insurance company provided us with a more professional and knowledgeable attorney that we could have had access to on our own. S.A. (Idaho insured)

One does not find this good of service very often. R.H. (Idaho insured)

WATCH OUT FOR: Insurance providers who do not consider you their top priority.

IMPORTANT NOTICE:
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 claim’s facts, circumstances, and allegations and application of the relevant policy’s terms, conditions, and exclusions. The E&O program described herein is only available in Idaho. CNA is a registered trademark of CNA Financial Corporation. Copyright © CNA. All rights reserved.