2025 Insurance Program Approved

Good morning, counsel.

Yesterday, the NAR Executive Committee approved the 2025 NAR Insurance Program. Lesley posted the following message to your association executives yesterday:

I’m pleased to report that the Executive Committee approved the 2025 NAR Insurance Program, demonstrating NAR’s continued commitment to provide this valuable risk management benefit at no cost for REALTOR® associations, association-owned MLSs, and affiliates.

Key features of the 2025 NAR Insurance Program include:

  • Coverage for all lines of insurance previously offered: Errors and Omissions (E&O), Directors and Officers (D&O), Employment Practices Liability (EPL), Crime Loss, Cyber, and Patent Infringement
  • 2x higher combined aggregate limits for the program, increasing from $12 million to $25 million
  • A separate D&O, EPL, and crime policy for state and local associations, MLSs, and affiliates, which means NAR claims will not affect the aggregate limit for this separate policy
  • Antitrust coverage for officers and directors, with an additional $1,000,000 aggregate claim limit
  • Entity-level antitrust coverage, with a $100,000 claim limit
  • New Antitrust Defense Fund available through the Legal Action Program
  • 25x higher social engineering limits, increasing from $10,000 per claim to $250,000
  • 3x higher cyber claim limits, increasing from $1,000,000 per claim to $3,000,000 with additional types of loss coverage such as business interruption
  • 10x higher patent claim limit, increasing from $50,000 to $500,000 with additional competitor claim coverage
  • New Tech E&O coverage

The 2025 program will be offered through four different insurers, which allowed NAR to achieve some great new benefits of the program. It also means that you will see some changes. Market adjustments were made to program deductibles, but with specific security controls insureds may be able to access lower deductibles for cyber claims. Additionally, excess coverage will only be available for the cyber line. The attached FAQs are designed to answer some of your most anticipated questions about the 2025 program, but you can expect additional guidance and resources in the coming weeks, along with the annual insurance virtual mailing in early January.

Program Webinar:

Please join us on December 12, 2024 at 1pm CT for the "2025 NAR Insurance Program Overview" webinar to learn more about the program details. Register here and share the registration link with your officers and directors, and legal counsel. The session will be recorded for those who are unable to attend.

Action Required:

As a reminder, it is very important that you conduct a reasonable inquiry and submit all known, potential and threatened claims of which you are aware to Chubb on or before December 30, 2024. Failure to do so could result in a denial of coverage by Chubb. While we anticipate prior acts coverage as part of the 2025 program, the prior acts coverage from a new insurer may not cover any claims you had knowledge of prior to the new policy effective date.

We look forward to you joining our December 12th webinar. If you have any questions in the meantime, please email insurance@nar.realtor.

Lesley

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Attached to this post please find the FAQs that Lesley mentioned. When you register for the webinar, please include the name of your association/client and "Counsel" on the registration form for faster approval.

More resources and guidance will be coming soon; getting the program components approved was the first step.

If you have been in Boston for the NAR NXT conference, I wish you safe travels home.

Deanne

Icon pdf big Insurance Nov 2024 FAQs FINAL.pdf

This information is only accurate as of 11/11/24. You must contact SCR for updates and changes to this information after 11/11/24 as laws and regulations may change over time. SCR 803-772-5206 or email info at screaltors.org or email byron at screaltors.org)

This information is not legal advice. This information is intended only to provide general information and may not be relied upon as specific legal guidance. Legal counsel should always be consulted before acting in reliance on this information.