Colorado Real Estate Licensee Errors & Omissions (E&O) Group Program
Administered by Rice Insurance Services Company, LLC (RISC) and
Issued by Continental Casualty Company
If you are currently enrolled in the Colorado Real Estate Commission’s (the “Commission’s”) group policy, your coverage expires January 1, 2021. Failure to timely obtain or renew coverage may lead the Commission to inactive your license and assess fines and penalties.
The Commission selected RISC to provide the state group E&O insurance policy for real estate licensees, which is issued by Continental Casualty Company, a CNA insurance company. The program exceeds state requirements and provides the required limits of $100,000 per claim, up to $300,000 aggregate, per licensee with a $1,000 deductible for damages and no deductible for claim expenses for $229.00.
Colorado law requires that all active individual real estate licensees carry and maintain E&O insurance to cover all licensed activities. Active licensed real estate companies that (1) employ licensees in addition to the responsible broker and (2) are organized as corporations, limited liability companies, or partnerships are also required to carry E&O insurance. Real estate firms that are sole proprietorships or that do not employ licensees other than the responsible broker are not required to carry E&O insurance but may choose to do so (the responsible broker is required to maintain individual E&O coverage). Before activation of a license, a prospective licensee must obtain insurance coverage. Licensees may purchase insurance outside of the state group program, provided the coverage complies with state minimum requirements and proof of coverage is filed with the Commission. Once you enroll in our program, we will provide the appropriate notification to the Commission.
Individuals MUST have an ACTIVE real estate license issued by the Colorado Real Estate Commission or be applying for one to be eligible to purchase insurance through this program. The group program allows an individual licensee to enroll for coverage only one time per group policy period. You may not purchase duplicate policy limits or increased limits by enrolling multiple times. You also may not add endorsements after enrollment without completing an Endorsement Request Form (available on our website) and receiving approval from the insurance company, Continental Casualty Company. Endorsements are only guarantee-issue for an individual licensee at the time of original enrollment.
Please have the following information ready to proceed with enrollment:
- Active Individual Licensees: Your license number and type, which may be verified on the Commission’s website at https://apps.colorado.gov/dre/licensing/Lookup/LicenseLookup.aspx. We cannot verify coverage to the Commission without the correct license number and license type.
- Active Firm Licensees: Your firm’s license number and type, which may be verified on the Commission’s website at https://apps.colorado.gov/dre/licensing/Lookup/LicenseLookup.aspx. We cannot verify coverage to the Commission without the correct license number and license type.
- New Individual Licensees: We suggest you contact your employing broker to verify your company participates in the group program before enrolling. A license number is not required to enroll, but you will not have coverage under the policy until you have been issued an active real estate license. If you have not been issued a license number, check the Pending box when the license number is requested.
- New Firm Licensees:
- A license number is not required to enroll, but your firm will not have coverage under the policy until it has been issued an active real estate license. If your firm has not been issued a license number, check the Pending box when the license number is requested.
You must have a PDF reader (such as Adobe Acrobat Reader or Foxit PDF Reader) to download your certificate of coverage upon completion of your online enrollment. If you do not already have a PDF reader, please download one prior to online enrollment.
Please review and agree to the following important information:
What Is and Is Not Covered: We urge all licensees to review a sample policy, including the Exclusions section. A sample policy (new form pending Colorado Division of Insurance approval) is available here or by calling us toll-free at 1-800-637-7319, ext. 1, and requesting one.
This is a Claims-Made-and-Reported Policy
- There is no coverage for claims first made before the beginning or after the end of your individual policy period. If you have any knowledge of a claim; potential claim; or any act, error, omission, fact, or situation that may give rise to a claim against you or your company, it must be reported in writing immediately to your insurance carrier before your current policy period expires. Failure to do so may jeopardize any coverage that would have otherwise been available.
- To report a claim under the group policy, you must send us written notice of the claim and a notice of claim form, available on here or by calling us and requesting one.
- There is no coverage for claims that arise after the policy expires unless an extending reporting period (ERP) is in place. However, claims often arise years after the subject transaction occurred. If you are not renewing coverage for any reason, (e.g. inactivating or retiring your license or switching to a firm policy), you should consider purchasing an ERP endorsement. Licensees insured under the 2020 group policy who do not renew for the 2021 group policy may purchase a 1, 2, or 3 year ERP endorsement to extend the policy’s reporting date to apply to claims that are first made and reported within that period. Licensees insured under the 2021 group policy who do not renew for the 2022 group policy may purchase a 1, 2, 3, or 5 year ERP endorsement. ERP endorsements may only be purchased during the individual policy period or up to 90 days after the end of the individual policy period.
- (1) An active real estate license or (2) be in the process of obtaining an active real estate license (if you have not received a license number, select Pending when the license number is requested).
- Appraisal Coverage is ONLY Available to Individuals Who Have Both an Active Real Estate License and an Active Appraisal License. Individuals who are licensed appraisers but do not have an active real estate license are not eligible to purchase insurance through this program. However, they may be interested in purchasing insurance through Colorado’s state group appraiser E&O program, which we also administer. More information about the appraiser group program is available here.
- Note: The policy provides that in the event a licensee’s license is placed on inactive status during a period in which the insured has paid the applicable premium, the policy will remain in effect for the remainder of the individual policy period, except there will be no coverage for acts, errors, or omissions that occur while the license is inactive.
- Licensees domiciled in Colorado are insured for professional services performed anywhere they hold an active real estate license, provided the services would require a license under Colorado law if they had been performed in Colorado.
- Out-of-state licensees will be considered domiciled in Colorado if they reside within 50 miles of the Colorado state line and the license under which the majority of the licensee’s real estate transactions are performed is affiliated with a Colorado real estate office.
- Licensees who are not actually or considered to be domiciled in Colorado are insured for professional services performed in only in Colorado.
- In any event, the claim must be brought within the United States, its territories or possessions.
Importance of Timely Renewal and Continuous Coverage
- Your “retroactive date” determines whether there is coverage for services performed before the policy’s effective date. The retroactive date is the date you first obtained, and since which have continuously maintained, E&O insurance, with no gaps. Even a one-day gap will result in loss of coverage for any services provided before and through the last day of the gap, even if insurance was in place at the time of the services and again when the claim arises.
- Colorado law requires that all active real estate licensees carry and maintain E&O insurance. Failure to maintain uninterrupted insurance is a violation of Colorado licensing law and may result in civil penalties and fines.
- If you failed to enroll timely, call RISC immediately to see if you qualify to backdate your inception date to January 1, 2021, which may avoid a gap in coverage and loss of any previously-established retroactive date. This procedure does not remedy noncompliance with mandatory insurance laws.
Premium / Deductible
- All premiums are fully earned at policy inception and no refunds are permitted after that date.
- We accept Visa or MasterCard only for online enrollment.
- A nonrefundable $5.00 convenience fee applies to online enrollment.
- If your payment transaction is charged back for any reason or returned for nonsufficient funds, you will be responsible for payment of any resulting fees or penalties assessed by the credit card company and/or bank.
- Licensees with an effective date after January may pay a prorated premium.
- The deductible will be due in accordance with the policy. You agree to reimburse the Company for any and all costs and expenses it incurs by employing a collection agency to collect any overdue deductible.
Additional information is available on our website or by calling us at (800) 637-7319, Ext. 1.
By continuing this quote, you agree to the terms of this agreement, including the following: Applicant has reviewed and understands the information contained herein. Applicant declares that the above statements are true and that Applicant has not suppressed or misstated any material facts. Applicant understands that it is a crime to knowingly provide false, incomplete, or misleading information to an insurance company for the purpose of defrauding the company. Penalties include imprisonment, fines, and denial of insurance benefits. Applicant agrees that this application shall be the basis of the contract with the Company and that coverage, if written, will be provided on a claims-made-and-reported basis. Applicant understands and agrees that the completion of this application does not bind the Company to issue a policy.