Colorado set to change E&O Insurance rule to help Independent Brokers

On June 5th at the real estate commission meeting in Denver the commissioners will be voting on a change to Rule D-14 - Errors and Omissions (E&O) Insurance that would change the requirement that companies with only one licensee carry separate E&O Insurance policies.

Under the current rule, every licensee, as well as all real estate companies, must carry at least the minimum required amount of coverage. This current requirement means that Independent brokers who open a company but do not employ additional licensees in the firm must carry a separate "company" policy. This has the effect of duplicating coverage for those licensees who choose to work alone.

The new rule would require a company policy only for those firms that have employed licensees in addition to the supervising broker, effectively eliminating the need for an Indpeepdent broker to have a company policy E&O policy that duplicates the coverages already in place under the licensees individual insurance policy.

The proposed language change to Rule D-14 is below. (Note: only the portion of the rule being reviewed for change by the commission is posted here. For the full notice you may go online to


Written and Published by: VanEd

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