South Dakota Real Estate Commission’s Group Policy

Under Agreement with the South Dakota Real Estate Commission

January 1, 2024 to January 1, 2025 Policy Period – ONLINE ENROLLMENT NOW AVAILABLE!

Click Enroll or Renew to the left for more information

The South Dakota 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 South Dakota 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.

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 South Dakota. CNA is a registered trademark of CNA Financial Corporation. Copyright © CNA. All rights reserved.

Sample Policies and Endorsements

1. 2024 Sample Policy

2. 2024 Optional Coverages

3. 2024 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.

January 1, 2024 to January 1, 2025 Policy Period – ONLINE ENROLLMENT NOW AVAILABLE!

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 or Renew

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

• Prorated Enrollment Form: Purchase coverage to be effective after January 1, 2024
• 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. 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 South Dakota. CNA is a registered trademark of CNA Financial Corporation. Copyright © CNA. All rights reserved.

Why Choose RISC

Since 2003, over $4.2 Million in defense costs and damages have been incurred by Continental Casualty Company (a CNA insurance company) on behalf of South Dakota licensees as of August 31, 2023. RISC and the carrier share a commitment to their insureds to provide valuable coverage to South Dakota licensees. When shopping for insurance, it’s important to ask about the company’s experience and paid South Dakota 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 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 providing information about the policy 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.

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 South Dakota. 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 – $187
$100,000 per claim / $500,000 aggregate with a $1,000 damage and a $500 expense deductible. (Only one damage and one expense deductible applies if a claim involves multiple licensees with the same firm.)

• February – $171
• March – $156
• April – $140
• May – $125
• June – $109
• July – $94
• August – $78
• September – $62
• October – $47
• November – $31
• December – $16

Increased Limits Available- Available for additional premium
Increased limits available to individual licensees in the amounts of $250,000 per claim / $750,000 aggregate & $500,000 per claim / $1,000,000 aggregate

Firm Excess Policies- Subject to underwriting approval
Firm excess policies (written by Continental Casualty Company) up to $3,000,000 limits available to firms whose licensees are all insured through the group program. In addition to traditional excess coverage, our excess program automatically includes these key features at no additional cost: (1) Environmental Hazards Claims Coverage sublimits of $100,0000 per claim and in the aggregate for covered claims alleging failure to advise of the existence of pollutants, asbestos, radon, or lead and (2) Discrimination Claims Coverage sublimits of $100,000 per claim and in the aggregate for covered claims alleging discrimination in the performance or failure to perform professional services (this is in addition to the environmental and discrimination sublimits provided in the underlying group program). All of the firm’s licensees must participate in the group program for the firm to qualify for an excess policy.

Unlimited Defense Costs-Automatically included
There is NO LIMIT on the amount of defense costs the carrier will pay in connection with covered claims. (There are limits on defense costs under the regulatory complaints and subpoena assistance coverages, which were not traditionally covered at all under many E&O policies.)

Firm / Franchise Coverage- Automatically included
Real estate firm and 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.

Enhanced Definition of Professional Services-Automatically included
In addition to services performed pursuant to the licensee’s real estate license, the policy also applies to property management services; auctioning real estate; broker price opinions; and notary public, real estate consultant, and real estate counselor services performed in connection with licensed services.

Discrimination /Fair Housing Coverage- Automatically included
$25,000 per claim / $25,000 aggregate (damages) with no limit on defense costs.

Escrow / Earnest Money Coverage-Automatically included
$5,000 per claim / $10,000 aggregate (damages) with no limit on defense costs.

Environmental Coverage-Automatically included
$10,000 per claim / $20,000 aggregate (damages) with no limit on defense costs.

Lock Box Coverage- Automatically included
$5,000 per claim / $10,000 aggregate (damages) with no limit on defense costs.

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

Residential Personal Interest Coverage- $15
Provides coverage for claims relating to the sale or listing of residential property owned by the licensee, the licensee’s spouse, or a company owned by the licensee under certain conditions (a $500 damage deductible applies to damage payments made under this endorsement).

Subpoena Coverage- Automatically included
$2,500 in attorneys’ fees to represent the insured in connection with a covered subpoena (maximum aggregate of $2,500 for all subpoenas).

Spousal Coverage- Automatically included
Coverage for the licensee’s spouse or domestic partner in certain situations.

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

Security Breach Coverage- Automatically included
If a real estate firm is required to notify clients of a security breach when confidential commercial information or nonpublic personal information may have been disclosed or used in an unauthorized manner, the policy provides reimbursement up to $5,000 for costs incurred by the licensee’s real estate firm in providing such notice. Maximum of $5,000 per real estate firm, regardless of the number of licensees or incidents involved. This is not coverage for the licensee’s or licensee’s family’s personal identity theft risk, which is not a professional liability risk and which is usually offered to individuals by personal insurance policy providers and credit card companies.

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.

Property Management Activities- Automatically included
The group policy insures specified leasing and property management services.

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 South Dakota and have an active real estate license in South Dakota and another state that requires real estate E&O insurance, you may purchase a conformity endorsement to conform your coverage under the South Dakota 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 South Dakota (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 South Dakota. If you are not actually domiciled in South Dakota or not considered to be domiciled in South Dakota under the policy provisions, the policy will only insure professional services rendered in South Dakota.

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 South Dakota. 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 limit on the amount of defense costs under the basic policy (defense costs are limited under the regulatory complaints and subpoena assistance coverages, which were not traditionally covered at all under many E&O policies).

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 or domestic partner’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 or domestic partner’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?

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

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 South Dakota. CNA is a registered trademark of CNA Financial Corporation. Copyright © CNA. All rights reserved.