KRS 324.395 mandates that all real estate licensees, except those whose licenses are in escrow, shall carry errors and omissions insurance to cover all real estate brokerage activities. The Kentucky Real Estate Commission (KREC) contracts each year with an insurance provider for a group policy. The group policy is available to all licensees and the group insurance provider cannot cancel or deny coverage to anyone who decides to participate in the group program. Active licensees also have the option of purchasing private errors and omissions insurance coverage, as long as the coverage meets the minimum requirements. Licensees who select private coverage will need to supply the KREC with a completed Private Carrier Certification of Coverage form. This form outlines the minimum requirements and must be signed by an authorized insurance agent. There is a charge of $10.00 per licensee to process private coverage.
Licensees who decide to purchase group coverage must contact KREC at 502-429-7250 or 888-373-3300 for the exact group errors and omissions amount. The premium for group coverage is the same amount for all licensees, but the taxes are based on the location of the business address. Therefore, licensees must contact KREC and provide the name of their principal broker and the address of the office that they will be affiliated with. A representative from KREC will be able to provide licensees with group a policy amount, which includes the premium, a surcharge, municipal taxes and a $10.00 processing charge. Keep in mind that the errors and omissions insurance premiums are pro-rated throughout the year, so the amount changes every quarter.
For information about the current group errors and omissions insurance provider and the current group policy, please click on the link below.
Private Carrier Certification Form
For Commission group E & O rates search the principal broker of the firm you will be affiliating with on the KREC Database