KREC Errors & Omissions Insurance Policy

The Commonwealth of Kentucky, specifically the Kentucky Real Estate Commission (KREC), is seeking a vendor to provide a comprehensive Errors & Omissions (E&O) Insurance Policy for all active Kentucky real estate licensees. The procurement, identified as RFB 758 2600000247, requires a claims-made insurance policy with six mandatory coverage components: primary residence, environmental, fair housing, escrow/earnest money, franchise grantor, and regulatory coverage. The policy must provide $100,000 per-claim and $1,000,000 aggregate coverage per licensee with zero deductibles. Vendors must have an A.M. Best rating of B+ or better and be licensed by the Kentucky Department of Insurance. The evaluation methodology will be best value, with price weighted at 100 points, where the lowest responsive bidder receives maximum points. Key deadlines include written vendor questions due by December 19, 2025 at 1:30 PM ET, and bid closing on December 29, 2025 at 1:30 PM ET. The initial contract term will be two years from the award date, with coverage effective April 1, 2026 through April 1, 2028, and potential for three additional two-year renewal periods.

The solicitation does not explicitly mention specific set-aside designations or restrictions for disadvantaged enterprises. The vendor must be registered in the Commonwealth eProcurement System and submit electronic bids only, with required documentation including Revenue Form 10A100 for tax registration and mandatory affidavits. Premium rates are capped at $200 per individual licensee for basic policy coverage and an additional $200 for extended reporting period coverage. The Commonwealth will not handle premium funds, and the selected vendor must collect premiums directly from licensees on a pro-rata quarterly basis. While specific budget ranges are not detailed, the solicitation covers approximately 13,372 active licensees as of July 1, 2021. The vendor must provide an electronic web service system compatible with KREC's licensing back office, maintain a list of approved Kentucky real estate litigation attorneys, and submit quarterly loss run reports. Vendors must also comply with Kentucky reciprocal preference provisions and qualified bidder preferences.