law
Mandatory E&O Insurance (Colorado)
Colorado requires every active licensee to carry errors and omissions insurance under C.R.S. 12-10-204 and Rule 3.9; inactive brokers and attorneys with equivalent malpractice coverage are exempt. Individual coverage must be at least $100,000 per claim and $300,000 annual aggregate, with a deductible no higher than $1,000 and lockbox coverage of at least $25,000. Because Colorado's license law contains no recovery fund, mandatory E&O is the tested consumer-protection tool.
- Exam tip
- '1-3-1': $100K per claim, $300K aggregate, $1K deductible. An inactive broker does not need E&O; $2,500 is the maximum fine, not the deductible.
- Example
- A broker moves her license to inactive status while on leave. She no longer needs E&O coverage, but must have it again before reactivating.
Related terms & state variants
Sources
Source verification pending. Confirm current requirements with your state regulator.
Last verified: 2026-10-23