Alaska Real Estate Errors & Omissions Insurance
Real Estate E&O Insurance Designed for Alaska Licensees
January 1, 2024 to January 1, 2025 Policy Period – ENROLLMENT NOW AVAILABLE!
Click Enroll or Renew to the left for more information
The Alaska 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 Alaska brokers and salespersons 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.
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2024 Sample Policy
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2024 Optional Coverage
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2024 Policy Features Flyer
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Claims
Sample Policies and Endorsements
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.
January 1, 2024 to January 1, 2025 Policy Period – ONLINE NOW AVAILABLE!
Enroll Online:Enroll or Renew
Enroll by Mail: Mail your completed form with applicable premium by check or money order (payable to RISC) to either address below:
| Mailing Address: Rice Insurance Services Center P.O. Box 6709 Louisville, KY 40206-0709 |
Overnight Address: Rice Insurance Services Center 4211 Norbourne Blvd. Louisville, KY 40207-4048 |
Individual Licensee Coverage
- Prorated Enrollment Form: Purchase coverage to be effective after January 1*
- Endorsement Request Form: Request to add an endorsement to an individual 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.)
*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 January 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 Alaska. CNA is a registered trademark of CNA Financial Corporation. Copyright © CNA. All rights reserved.
Why Choose RISC
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 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.
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 all 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 Colorado. CNA is a registered trademark of CNA Financial Corporation. Copyright © CNA. All rights reserved.
Pricing & Available Coverage
Limits of Liability, January 1, 2024 to January 1, 2025 – Two Coverage Options
$100,000 per Claim / $300,000 aggregate with $2,500 Damage deductible. (Only one deductible applies if a Claim involves multiple Licensees with the same firm). More information about coverage options available here and on the enrollment form.
| Expanded Professional Services Coverage: Residential Sales Coverage + Expanded Definition of Professional Services Endorsement – $642 Select if ANY of the following applies to you.
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Residential Sales Coverage ONLY – $450 Select if ALL of the following applies to you. If any one of the following is not true, you must purchase the Expanded Professional Services Coverage Option. The Commission will be notified of false reporting of your claims history or real estate activity.
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First Dollar Defense – Automatically included
Applies WITH NO CONDITIONS to all covered Claims.
Defense Outside Limits – 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 (note, there are limits on defense costs under the discrimination / fair housing sublimit, environmental sublimit, escrow sublimit, and subpoena and regulatory complaints coverages).
Firm / Franchise Coverage – Automatically included
Real Estate Firm and franchisor included in the definition of Insured.
Real Estate Firm Endorsement – Available Upon Request (No Charge)
AVAILABLE TO BROKER OF RECORD ONLY. Adds a specific real estate firm to the definition of Insured, but only for the firm’s vicarious liability for a negligent act, error, or omission in Professional Services performed by a Former Licensee if certain conditions are met.
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
$5,000 per Claim / $10,000 aggregate (Damages & defense costs, combined).
Environmental Coverage – Automatically included
$5,000 per Claim / $10,000 aggregate (Damages & defense costs, combined).
Escrow / Earnest Money Coverage – Automatically included
$5,000 per Claim / $10,000 aggregate (Damages & defense costs, combined).
Lock Box Coverage – $20
$5,000 per Claim / $10,000 aggregate (Damages & defense costs, combined).
Subpoena Coverage – Automatically included
$2,500 per subpoena / $2,500 aggregate (attorneys’ fees).
Regulatory Complaints Coverage – Automatically included
$2,500 per regulatory complaint / $5,000 aggregate (defense costs).
Primary Residence and Residential Personal Interest Coverage – $50
Adds insurance for Claims relating to the sale or listing for sale of the insured Licensee’s Primary Residence or other Residential Property, as defined in the endorsement, owned by the insured Licensee, insured Licensee’s spouse or Domestic Partner, or an entity owned or controlled by the Licensee or Licensee’s spouse or Domestic Partner, under certain conditions
Conformity for Other States that Require Real Estate E&O Insurance – $20
A conformity endorsement is only needed if you are actively licensed in another state that mandates E&O coverage. If you are domiciled in Alaska and have an active real estate license in Alaska and another state that requires real estate E&O insurance, you may purchase a conformity endorsement to conform your coverage under the Alaska policy to meet the other state’s requirements for Professional Services performed in that state. To be eligible for this endorsement, you must (1) be domiciled in Alaska and (2) purchase the Expanded Professional Services Coverage Option.
Territory – Subject to Policy Provisions
For Licensees domiciled in Alaska, the policy applies to Professional Services provided anywhere in the world, provided the Licensee is duly licensed in the state where services were provided, and the services would require a real estate license had they been performed in Alaska. Licensees not actually domiciled in Alaska are insured only for Professional Services rendered in Alaska. A conformity endorsement is only needed if you are actively licensed in another state that mandates E&O coverage. If so, you may purchase an endorsement for only $20 to conform your insurance through the Alaska group policy coverage to comply with the other state’s requirements.
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 Alaska. 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.
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.
It also applies to services performed for a spouse or domestic partner who has 25% or less interest in the property.
If your spouse or domestic partner has more than a 25% interest in residential property you are considering listing or selling, contact us to inquire about our Residential Personal Interest Coverage Endorsement.
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.
Do you have a voice in choosing an attorney?
RISC: Yes. Our policy states that defense counsel must be mutually agreeable to the insured and the carrier.
WATCH OUT FOR: Insurance providers who will not consider your request for counsel or who will not provide you several attorneys to choose from.
Are insureds satisfied with the provider’s service?
RISC: Yes. Below are excerpts from actual emails we have received from insureds:
“Just wanted to shoot you a quick email to let you know that . . . I really appreciate how thorough you were in taking care of this issue. Your employer is lucky to have you. Thanks again!”–J.A., RISC insured since 2012
“I want to express my thanks to you. When you are in this “situation” there are a number of emotions that seem overwhelming such as embarrassment, anger, and sadness. While I know we didn’t do anything wrong, I cannot tell you how appreciative I am of the services that you and RISC offer. Not only have you saved us but you have been so kind in your communications. I want you to know it is very much appreciated! Also, I feel your insurance company provided us with a more professional and knowledgeable attorney than we could have had access to on our own.”– S.A., RISC insured since 2004
“Thank you, thank you, thank you. Your swift response only reinforces my faith in your coverage and service.”–R.F., RISC insured since 2003
WATCH OUT FOR: Insurance providers who do not consider you their top priority.
