July 4, 2016
Starting in July there are changes to insurance coverages in the real estate industry.
Previously, the Department of Workforce Development (DWD) considered real estate salespersons licensed to work for a licensed broker to be employees of that broker. As such, those individuals were covered under the Workers’ Compensation insurance policy issued to the broker. As of July 1, 2016, this is changing.
Statutory changes provide that some real estate salespersons will be considered independent contractors unless the broker elects to name them as employees. Wis. Stat. 452.38 addresses the independent contractor relationship, stating that a licensed real estate salesperson can be considered an employee of the firm as long as they have not completed a written agreement with the firm confirming their status as an independent contractor.
The Wisconsin Compensation Rating Bureau (WCRB) created the Wisconsin Real Estate Salesperson Endorsement WC 48 03 04 to address this statutory change. This endorsement must be added to the policy for any insured wishing to cover their real estate salespersons under their Workers’ Compensation policy.
Contact your Robertson Ryan agent or service team for details.