KREC Errors & Omissions Insurance Policy

The Commonwealth of Kentucky Finance and Administration Cabinet, specifically the Kentucky Real Estate Commission (KREC), is seeking a comprehensive Errors & Omissions (E&O) Insurance Policy for all active Kentucky real estate licensees. The procurement is a Request for Bid (RFB 758 2600000247) targeting a master insurance agreement that provides mandatory coverage across six specific domains: primary residence, environmental, fair housing, escrow account/earnest money, franchise grantor, and regulatory coverage. The policy must offer $100,000 per licensee per claim with a $1,000,000 aggregate limit, featuring no deductibles for damages or claims expenses. Vendors must maintain a minimum B+ A.M. Best rating and be licensed by the Kentucky Department of Insurance. The solicitation requires an electronic web service system compatible with KREC's licensing back office for real-time licensee compliance verification. Bidders must submit questions by December 16, 2025, at 1:30 PM ET, with electronic bid submissions due January 5, 2026, at 1:30 PM ET through the Commonwealth eProcurement system. The initial contract term spans two years from April 1, 2026, through April 1, 2028, with potential for three additional two-year renewal periods.

The procurement does not explicitly indicate specific set-aside designations for disadvantaged enterprises, though Kentucky's resident bidder preferences and qualified bidder preferences may apply during evaluation. The award will be made based on best value using price as the sole measurable criterion, with 100 points allocated to pricing and minimum requirements evaluated on a pass/fail basis. The per-licensee premium is capped at $200 annually for basic coverage, with approximately 13,372 active licensees as of July 2021. Premium collection responsibility falls entirely to the vendor, with licensees paying directly. Vendors must compile a list of approved attorneys with at least one year of real estate litigation experience and Kentucky principal business addresses. All premiums are considered fully earned upon policy issuance, though pro-rata refunds are available if the policyholder requests cancellation in writing prior to expiration. Historical premium rates have ranged from $106 to $140 per licensee annually, exclusive of taxes and surcharges, with a potential total contract value of approximately $2,674,400 annually based on current licensee count.