KREC Errors & Omissions Insurance Policy

This Request for Bid (RFB 758 2600000247) issued by the Commonwealth of Kentucky Finance and Administration Cabinet on behalf of the Kentucky Real Estate Commission (KREC) seeks a vendor to provide group Errors and Omissions (E&O) insurance coverage for all active Kentucky real estate licensees. The procured services include a Master Agreement for E&O insurance on a claims-made basis with mandatory coverage components: $100,000 per claim/$1,000,000 aggregate per licensee with zero deductibles; primary residence coverage; environmental coverage ($5,000 per claim/$10,000 aggregate); fair housing coverage ($10,000 per claim/$10,000 aggregate); escrow/earnest money coverage ($2,500 per claim/$5,000 aggregate); franchise grantor coverage; and regulatory coverage ($2,500 per claim/$5,000 aggregate). The successful vendor must maintain an A.M. Best rating of B+ or higher, be licensed by the Kentucky Department of Insurance, and provide an electronic web service system compatible with KREC's licensing system, along with a list of approved attorneys with real estate litigation experience. The contract will be awarded based on best value using price as the sole measurable criterion (100 points), with pricing not to exceed $200 per person for the basic policy and $200 per person for extended reporting period coverage in compliance with KRS 324.395. The initial biennial contract term runs from April 1 of the first year through April 1 of the second year, with three optional two-year renewal periods at the Commonwealth's discretion. Vendors' written questions were due December 16, 2025, at 1:30 PM ET, with the bid closing deadline extended to January 5, 2026, at 1:30 PM ET. The successful vendor must submit the original binder within ten calendar days of contract award and the final policy within 45 calendar days of the effective coverage date.

Kentucky resident bidders are eligible for reciprocal preference, and qualified bidders receive an additional preference under 200 KAR 5:410. The procurement does not specify set-asides for disadvantaged enterprises, though standard Kentucky procurement preferences apply. Based on historical data provided in the solicitation documents, the group program covers approximately 13,372 active licensees, which provides context for the expected scope of the award. The solicitation includes claims data from the second quarter of 2025 showing 1,509 total claims processed across all policy groups with a total incurred claims amount of $8,199,811.34, indicating significant claims volume and demonstrating the financial scale of the coverage requirement. The Commonwealth reserves the right to renegotiate terms and conditions during renewal periods and to cancel the contract with thirty days' notice. While specific incumbent vendor information is not disclosed in the solicitation documents, the historical claims reports and policy data suggest continuity with existing program operations, and the successful vendor must ensure compatibility with KREC's existing licensing system infrastructure. The premium cap structure ($200 base plus $200 extended reporting) exclusive of applicable taxes, fees, and the 1.8% Kentucky surcharge provides the budget framework, though the full contract value will depend on the final number of enrolled licensees and claims experience during the contract term.