Kentucky

Enroll or Renew

2024 Enrollment Information NOW AVAILABLE! 

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.

April 1, 2024 to April 1, 2026 Policy Period

 THE KENTUCKY REAL ESTATE COMMISSION HAS MOVED TO A TWO-YEAR INSURANCE POLICY
For the policy period to match the licensing period, the Kentucky Real Estate Commission has moved to a two-year group insurance policy.  Your premium – only $244 plus surcharge and taxes – provides two years of coverage.  This will help licensees maintain continuous compliance, even in years between license renewals.

The KREC discontinued processing the Kentucky Group Program on their website on November 17, 2017. Policies will now be purchased directly through RISC.

Please follow the steps below when updating your E&O policy.

1. Each licensee purchases E&O through RISC. Enroll or Renew
   • Enrollment in the state program is ONLY available for purchase online using a Visa, MasterCard, American Express, or Discover Card. If for some reason you are unable to purchase online, please contact RISC at 1-800-637-7319 Option 1. Please Note that if you have not purchased insurance through RISC since November 17, 2017 you DO NOT have a login. For help enrolling online, click Here.
2. RISC will automatically send KREC the information digitally. (Please allow up to 24 hrs.)
3. Once KREC receives the data from RISC, they will send the licensee an email, asking them to pay the $10 fee.
4. Licensee logs onto their KREC online services account, selects miscellaneous fee, and follows the prompts until the transaction is complete.

The licensee SHOULD NOT upload the policy or pay the $10 fee until they receive that email from KREC prompting them to do so. If their online services account asks them to enter the policy information, they’ve selected the wrong thing. The $10 fee should be paid under the miscellaneous fee selection on the main menu.

Purchase Optional Endorsements:

For those who already have the basic policy in place for April 1, 2022 to April 1, 2024 and need to add endorsements. This form MUST BE MAILED to RISC for approval and processing.

• Endorsement Request Form: Use this form if you would like to add optional endorsements to your coverage.

If you previously had a policy with RISC that expired April 1, 2022

• Backdate Request Form: Request to backdate effective date of policy up to 90 days. Subject to approval. Even if your coverage is backdated to April 1, this procedure does not cure failure to comply with state law, so you may still be subject to state regulatory penalties and fines.

*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. Contact us if you would like to request to backdate the inception of your individual policy period up to 90 days. Please note the carrier reserves the right to refuse to grant requests to backdate. Further, even if your coverage is backdated to April 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 Kentucky. CNA is a registered trademark of CNA Financial Corporation. Copyright ©  CNA. All rights reserved 

Why Choose RISC

Over $15.4 Million in defense costs and damages have been incurred since 2003 by Continental Casualty Company (a CNA insurance company) on behalf of Kentucky licensees as of January 31, 2021. RISC and CNA share a commitment to their insureds to provide valuable coverage to Kentucky licensees. When shopping for insurance, it’s important to ask about the company’s experience and paid Kentucky 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 13 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 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 Kentucky. CNA is a registered trademark of CNA Financial Corporation. Copyright ©  CNA. All rights reserved 

Pricing & Available Coverage

Limits of Liability – $244 for two year premium, plus municipal taxes and KY surcharge.
$100,000 per claim / $1,000,000 aggregate with NO deductible. Prorated Quarterly:

• Apr – Jun 2024: $244
• Jul – Sep 2024: $214
• Oct – Dec 2024: $183
• Jan – Mar 2025: $153
• Apr – Jun 2025: $122
• Jul – Sep 2025: $92
• Oct – Dec 2025: $61
• Jan – Mar 2026: $31

Increased Limits Available – Available for Additional Premium.
Increased limits available in the amounts of

• $250,000 per claim / $1,000,000 aggregate – $130 for 2-year term or
• $500,000 per claim / $1,000,000 aggregate – $246 for 2-year term.

Firm Excess Policies – Subject to Underwriting Approval.
Firm excess policies (written by Continental Casualty Company) with $1,000,000 limits available to firms whose licensees are all insured through the group program. All the firm’s licensees must participate in the group program for the firm to qualify for an excess policy. Our excess program automatically includes these key features at no additional cost: Environmental Hazards Claims Coverage sublimits of $100,000 per claim and in the aggregate for covered claims alleging failure to advise of the existence of pollutants, asbestos, radon, or lead and 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). The firm’s broker or officer must complete an excess application form 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. (Defense costs are limited under the supplemental regulatory complaints, subpoena, and security breach notification coverages, which were not traditionally covered at all under many E&O policies.)

Insured Professional Services – Automatically Included.
The definition of professional services includes licensed activity, including broker price opinions, property management, leasing, and renting.

Real Estate Firm, Real Estate Team, and Real Estate Franchisor – Automatically Included.
Real estate firm, team, and franchisor that you represent included in the policy’s definition of an insured for the entity’s vicarious liability for negligent acts, errors, and omissions in your professional services. Franchise Endorsements are also available to add a franchise group with which you are affiliated to the definition of real estate firm to comply with specially-tailored language required by many franchise groups.

Discrimination / Fair Housing Coverage – Automatically Included.
$25,000 per discrimination / fair housing claim / $25,000 aggregate (damages, no limit on defense costs).

Escrow / Earnest Money Coverage – Automatically Included.
$5,000 per escrow claim / $10,000 aggregate (damages, no limit on defense costs).

Environmental Coverage – Automatically Included.
$10,000 per environmental claim / $20,000 aggregate (damages, no limit on defense costs).

Lock Box Coverage – Automatically Included.
$5,000 per lock box claim / $10,000 aggregate (damages, no limit on defense costs).

Primary Residence Coverage – Automatically Included.
Provides coverage for the sale or listing for sale of the insured licensee’s primary residence, provided the sale or listing is performed through your principal broker.

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

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.

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

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

Appraisal Endorsement – $400 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.

Appraisal Trainee Endorsement – $400 per Appraisal Trainee for 2-year term
Changes the definition of insured to include specific appraiser trainees listed in the endorsement.

Developed / Constructed by Spouse Endorsement – $500 for 2-year term
Adds insurance for the sale or listing for sale of residential property which is constructed or developed by the licensee’s spouse under certain conditions.

Residential Personal Interest Coverage Endorsement – $100 for 2-year term
Adds sublimits of $100,000 per residential personal interest claim / $1,000,000 aggregate (damages, no limit on defense costs) for the sale or listing for sale of residential property in which the licensee, the licensee’s spouse, or an entity owned by the licensee or the licensee’s spouse have an ownership interest under certain conditions.

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

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 Kentucky. 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 environmental, discrimination, escrow, lock box, and regulatory complaints coverages and the optional subpoena endorsement, 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 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 have received from Kentucky insureds:

“This went so well for all of us. . . . While being in real estate 18 years . . . I realize that every day you can learn something new which helps make us better agents for our clients. You & your company were great. I see now why it’s good to have insurance. Thanks again.” (D.W., RISC client for 12 years)

“I want to thank you for the absolute professional handling of a difficult experience. In this contentious day it was with trepidation that I called on you for help. However from the moment I spoke to [a RISC adjuster] until the issues were resolved I was advised respectfully and made aware of each potential matter up for discussion. I could have not asked for a more professional group to represent me. Thanks a million!” (J.M., RISC client for 12 years)

“I want to thank you and your company for your courtesy and the legal representation. I could not have asked for any more. [The attorney you hired to represent me] is a very competent attorney and super nice person. I will be happy to recommend your company to anyone. I hope I don’t have to call on you again, but it is very reassuring to know you are there if I need you. “(E.B., RISC client for 12 years)

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

Mandated ERP for Inactive Licensees

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.

For More Information or to Request a Quote CLICK HERE!

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 Kentucky. 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. 2022 Sample Policy  

4. 2022 Optional Coverages  

5. Claims  

6. Excess Coverage