RECO INSURANCE

As most may know by now the RECO insurance premium that will be coming out in July for our errors, deposit and commission insurance has gone up. The new premium will be $258, up $34 from last year. RECO did use $25 from the insurance premium buffer fund to keep the premium to that level otherwise it would have been $$283. WHAT YOU REALLY NEED TO KNOW is that the carrier has placed a cap on claims. The total occurrence aggregate amount of a claim per brokerage is set at $500,000 with $100,000 per single claim. This is for all claims, i.e. deposits and commissions. This is a first and the carrier broker says we could have a lot higher limit if we wanted to pay a lot more money. Is probably OK for smaller company/broker but larger with say over 40 salespeople would reach that limit very quickly in any insolvency. We all need to be aware of these changes.

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