Colorado Real Estate Commission’s Group Policy

Real Estate E&O Insurance Designed for Colorado Licensees

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

Click Enroll or Renew to the left for further information

The Colorado 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 Colorado brokers 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 Colorado. 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 Endorsements

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 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:

• Prorated Enrollment Form: Purchase coverage for an individual licensee 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.)

Firm Licensee Coverage

• Firm Prorated Enrollment Form: Purchase coverage for a firm licensee to be after January 1*

*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.

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.

Why Choose RISC

Over $37.8 Million in defense costs and damages have been incurred as of August 31, 2023 since RISC began administering the Colorado state group program in 2004. RISC and the carrier share a commitment to their insureds and providing valuable coverage to Colorado licensees. When shopping for insurance coverage it’s important to ask about the company’s experience and paid claims in Colorado. If a company is charging a very low amount, you may find out the carrier doesn’t provide much coverage or pay many claims. 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 – $229
$100,000 per claim / $300,000 aggregate with $1,000 damage deductible. (Only one deductible applies if a claim involves multiple licensees with the same firm.)

• February – $210
• March – $191
• April – $172
• May – $153
• June – $134
• July – $115
• August – $95
• September – $76
• October – $57
• November – $38
• December – $19

Increased Limits Available- Available for additional premium
Increased limits available to individual (not firm) licensees in the amounts of:

• $250,000 per claim / $750,000 aggregate – $189
• $500,000 per claim / $1,000,000 aggregate. – $309

Firm Excess Policies- Subject to underwriting approval
Firm excess policies (written by Continental Casualty Company) up to $3,000,000 limits are available to firms whose licensees are all insured through the group program. All of the firm’s licensees must participate in the group program for the firm to qualify for an excess policy.

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 and escrow sublimit).

Expanded Definition of Professional Services- Automatically included
The definition of professional services includes (1) services performed or advice given (including as a notary public and as a real estate consultant or counselor) in connection with licensed activity; (2) market analyses and valuations for listing a property or guiding a buyer in making an offer; and (3) broker price opinions.

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.

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
$30,000 per claim / $30,000 aggregate (damages & defense costs, combined), with option to increase to $50,000 per claim / $50,000 aggregate for a low price (see endorsement bundle).

Escrow / Earnest Money Coverage- Automatically included
$10,000 per claim / $25,000 aggregate (damages & defense costs, combined).

Lock Box Coverage- Automatically included
$100,000 per claim / $300,000 aggregate (damages) with no limit on defense costs and no deductible.

Subpoena Coverage- Automatically included
$5,000 per subpoena / $5,000 aggregate (attorneys’ fees).

Regulatory Complaints Coverage- Automatically included
$2,500 per regulatory complaint / $5,000 aggregate (defense costs), with option to increase to $5,000 per complaint / $5,000 aggregate for a low price (see endorsement bundle).

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

Appraisal Endorsement– $140
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- $140 per trainee
Insureds who purchase an appraisal endorsement may also purchase an appraisal trainee endorsement to add specific appraiser trainees listed in the endorsement as insureds.

Contingent Bodily Injury / Property Damage Endorsement- $30
$10,000 per claim / $10,000 aggregate (damages and claim expenses, combined) for bodily injury and property damage claims that arise from professional services under certain conditions.

Developed/Constructed By Spouse Sublimits Endorsement – $250
Adds $100,000 per developed / constructed by spouse claim (involving the sale or listing for sale of residential property which is constructed or developed by the licensee’s spouse) / $100,000 aggregate, under certain conditions.

Endorsement Bundle- $15 for all five Endorsements

• Environmental Endorsement: $10,000 per claim / $20,000 aggregate (damages & defense costs, combined)
• Residential Personal Interest Endorsement: Up to policy limits for claims concerning the sale or listing for sale of the licensee’s residential property (defined in the endorsement), under certain conditions
• Increased Fair Housing Sublimits: Increases fair housing sublimits to $50,000 per claim / $50,000 aggregate (damages & defense costs, combined)
• Increased Regulatory Complaints Coverage: Increases regulatory complaints coverage to $5,000 per complaint / $5,000 aggregate (defense costs)
• Security Breach Notification: Reimbursement up to $5,000 for costs incurred by your real estate firm to provide required notification to clients of a security breach when confidential commercial information or nonpublic personal information may have been disclosed or used in an unauthorized manner (up to a maximum of $5,000 per real estate firm, regardless of the number of licensees or incidents involved). This is not coverage for 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.

Property Management Endorsement- $25
The group policy insures professional services that require a real estate license, such as renting and leasing real property. We offer an endorsement to expand the definition of professional services to include additional, specified services that do not require a real estate license but are often performed by property managers, such as collecting rents and processing evictions.

Territory –  Subject to Policy Provisions
For licensees domiciled in Colorado, 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 Colorado.  Licensees not actually domiciled in Colorado or not considered to be domiciled in Colorado under the policy are insured only for professional services rendered in Colorado.  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 Colorado group policy coverage to comply with the other state’s requirements.

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 Colorado and have an active real estate license in Colorado and another state that requires real estate E&O insurance, you may purchase a conformity endorsement to conform your coverage under the Colorado policy to meet the other state’s requirements for professional services performed in that state.

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.

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 traditionally 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 group policy applies to claims involving services performed for your and your spouse’s relatives. This is important since buyers and sellers 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 have received:

“I’ve never seen better service than what you provide for us each year. I ask for something and it’s always answered by the end of the day. I wish all companies had your work ethic. I know I’m not the only one asking many questions and you’re always there…. Thank you.” —B.F. (CO licensee)

“My sincere thanks to [the RISC adjuster] for her professional, timely, and compassionate handling of my situation. I have never gone through this… but at this point, I feel that I am in excellent hands with [local defense counsel] and his firm.” —G.R. (CO licensee) “[T]hank you for going the extra mile.” —M.C. (CO licensee)

“WOW!!!!! I am completely blown away by how quickly and efficiently you [provide service]. You and your team are truly the best! Insurance providers who do not consider you their top priority.” — T.J. (Director of HR and licensing of large CO firm)

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

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.