KENTUCKY REAL ESTATE COMMISSION’S (KREC’S)
GROUP ERRORS AND OMISSIONS (E&O) POLICY
EXTENDED REPORTING PERIOD ENDORSEMENT INFORMATION
REQUIRED FOR LICENSE BEING PLACED INTO INACTIVE STATUS
NOT RENEWING YOUR INSURANCE THROUGH THE KREC’S GROUP E&O POLICY FOR ANY REASON? You should consider purchasing an extended reporting period (ERP) endorsement, often called “tail coverage.”
PLANNING TO PLACE YOUR LICENSE INTO INACTIVE STATUS? As of June 26, 2019 you must obtain at least a 1-year ERP endorsement prior to your license being placed into inactive status due to new requirements in KRS 324.310 and KRS 324.395. If you are currently insured through the KREC’s group policy, an optional 1-year ERP endorsement satisfies this requirement.
The KREC’s group policy is a claims-made-and-reported policy. There is no coverage for claims that arise after the end of your individual policy period unless an ERP is in effect, even if you had insurance in place when the transaction occurred. Claims often arise years after a transaction, so you should consider purchasing an optional ERP endorsement to cause the policy to apply to claims first made and reported up to 3 years after the effective date of the cancellation or nonrenewal (so long as the negligent act, error, or omission was committed after the retroactive date and before the effective date of cancellation or nonrenewal).
OBTAIN A PERSONALIZED ERP QUOTE
An optional ERP endorsement can only be purchased during your individual policy period or within 90 days after the effective date of cancellation or nonrenewal.