Tennessee Real Estate Commission’s Group Policy

Real Estate E&O Insurance Designed for Tennessee Licensees

January 1, 2023 to January 1, 2025 Policy Period – NOW AVAILABLE!

Click Enroll or Renew to the left for further information

The Tennessee Real Estate Commission (TREC) selected RISC to continue 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 Tennessee 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 Tennessee. CNA is a registered trademark of CNA Financial Corporation. Copyright ©CNA. All rights reserved.

Sample Policies and Endorsements

1. 2023 Policy

2. 2023 Optional Endorsements

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.

January 1, 2023 to January 1, 2025 Policy Period – 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:

Individual Licensee Coverage

• Prorated Enrollment Form: Purchase coverage to be effective after January 1, 2023*
• 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.)

Optional Firm Licensee Coverage

• Optional Prorated Enrollment Form Purchase coverage to be effective after January 1, 2023*

*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.

Why Choose RISC

Over $33.2 Million in defense costs and damages have been incurred by Continental Casualty Company (a CNA insurance company) on behalf of Tennessee licensees as of August 31, 2022 since our team began administering the Tennessee state group program in 2003. RISC and the carrier share a commitment to their insureds to provide valuable coverage to Tennessee licensees. When shopping for insurance, it’s important to ask about the company’s experience and paid Tennessee 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 of the 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.

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

Pricing & Available Coverage

Limits of Liability for 2-year policy term January 1, 2023 to January 1, 2025
$100,000 per claim / $300,000 annual aggregate with $1,000 damage deductible.  (Only one deductible applies if a claim involves multiple licensees with the same firm.)

Increased Limits Available- Available for additional premium

• $250,000 per claim / $750,000 annual aggregate  – $150 for 2-year term
• $500,000 per claim / $1,000,000 annual aggregate. – $260 for 2-year term

Firm Excess Policies- Subject to underwriting approval
Firm excess policies (written by Continental Casualty Company) with $1,000,000 limits (subject to underwriting approval). To qualify, all the firm’s licensees must participate in the group program. The firm’s broker or officer must complete an application to obtain a quote for a firm 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 and sublimits (there are limits on defense costs under the regulatory complaints and subpoena assistance coverage, which were typically not covered at all under most traditional E&O policies).

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.  We offer a franchise endorsement at no additional cost to add a specific franchise group that the insured licensee is affiliated with to the policy’s definition of real estate firm to satisfy many franchise groups’ franchise requirements (to request a franchise endorsement, contact us at info@risceo.com or 1-800-637-7319, Ext. 1).

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

Expanded Definition of Professional Services – Automatically included
In addition to licensed activity, insured services include opinions on recommended listing or purchase prices under certain conditions and services performed or advice given (including as a notary public and as a real estate consultant or counselor) in connection with licensed activity.

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 Sublimits – Automatically included
$5,000 per discrimination claim / $10,000 annual aggregate (damages) with unlimited defense costs.

Escrow / Earnest Money Sublimits – Automatically included
$5,000 per escrow claim / $10,000 annual aggregate (damages) with unlimited defense costs.

Environmental Sublimits – Automatically included
$100,000 per environmental claim / $300,000 annual aggregate (damages) with unlimited defense costs.

Lock Box Sublimits – Automatically included
$5,000 per lock box claim / $10,000 annual aggregate (damages) with unlimited defense costs.

Primary Residence Sublimits – Automatically included
$100,000 per primary residence claim (involving the sale or listing for sale of the insured licensee’s primary residence) / $300,000 annual aggregate with unlimited defense costs under certain conditions.

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

AUTOMATICALLY INCLUDED FOR 2023 Security Breach Notification Endorsement – Automatically included
$5,000 per real estate firm for cost incurred to notify clients of a security breach ($5,000 maximum per real estate firm, regardless of number of insureds or incidents involved).

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

Appraisal Endorsement – $50 for 2-year term
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.

Appraiser Trainee Endorsement – $50 per appraiser trainee for 2-year term
For active real estate licensees who are also supervising appraisers to add specific appraiser trainees listed in the endorsement as insureds (must also purchase appraisal endorsement).

Property Management Endorsement – $126 for 2-year term
Adds insurance for specified property management services.

Contingent Bodily Injury / Property Damage Coverage – $50 for 2-year term
$10,000 per claim / $10,000 aggregate (damages and defense costs, combined) for bodily injury and property damage claims arising from professional services under certain conditions.

Residential Personal Interest Sublimits Endorsement – $60 for 2-year term
$100,000 per residential personal interest claim (involving the sale or listing for sale of the licensee’s residential property (defined in the endorsement)) / $300,000 annual aggregate under certain conditions.

Developed / Constructed by Spouse Sublimits Endorsement – $300 for 2-year term
$100,000 per developed / constructed by spouse claim (involving the sale of residential property constructed or developed by the insured licensee’s spouse / $300,000 annual aggregate with unlimited defense costs under certain conditions.

Endorsement Bundle (includes following 4 endorsements) – $40 for 2-year term

• Increased Fair Housing / Discrimination Sublimits – Increases sublimits to $50,000 per covered fair housing / discrimination claim, up to 50,000 aggregate for damages.
• Increased Lock Box Sublimits – Increases sublimits to $50,000 per covered lock box claim, up to $50,000 aggregate for damages.
• Increased Subpoena Coverage – Increases limited attorneys’ fees coverage to $5,000 per covered subpoena, up to $5,000 aggregate.
• Increased Regulatory Complaint Coverage (Disciplinary Proceedings) – Increases limited defense cost coverage to $5,000 per covered regulatory complaint, up to $5,000 aggregate

Conformity for Other States that Require Real Estate E&O Insurance- $30 for 2-year term
A conformity endorsement is only needed if you are actively licensed in another state that mandates E&O coverage. If you are domiciled in Tennessee and have an active real estate license in Tennessee and another state that requires real estate E&O insurance, you may purchase a conformity endorsement to conform your coverage under the Tennessee 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 Tennessee (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 Tennessee. If you are not actually domiciled in Tennessee or not considered to be domiciled in Tennessee under the policy provisions, the policy will only insure professional services rendered in Tennessee.

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 Tennessee. 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 regulatory complaints and subpoena assistance coverages, which were not covered at all under most traditional 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 policy applies to claims involving services performed for your and your spouse’s relatives. This is important since buyers and seller often rely on a trusted relative with a real estate license.

WATCH OUT FOR: Policies that exclude coverage for claims arising from transactions involving your or your spouse’s relatives.

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 farmland 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.  Excerpts from actual emails we’ve received from Tennessee insureds:

“I very much appreciate your support. Every experience I’ve ever had with Rice has been positive. You all are great to work with.”— J.S.

“I just didn’t 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.

“I can’t thank you enough for your support and backing during this 4 ½ year ordeal. Mostly I can’t tell you how grateful I am that you provided me such an able, dynamic young attorney.  [W]e’ve prevailed in this major portion of the lawsuit. [I]t’s not only because you had an innocent insured but that [defense counsel] was able to convince the jury of our innocence.”— C.V.

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

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