E&O Policy Details
What is Agent Owned Property coverage? Does it cover my own house or an investment property?
The Agent-Owned Property (AOP) endorsement adds coverage when you want to be the listing agent on the sale of your own, or a direct relative’s residential one to four unit property, There are specific rules which must be met in order for the carrier to insure the sale of AOP: A written home inspection reportRead More
What is Contingent Liability coverage?
Contingent liability is also known as CRES Open House and Showings coverage. It’s an additional endorsement that broadens coverage, to include any claim or suit that is brought against you for damages because of bodily injury (to someone other than you) or property damage. CRES Contingent liability also covers bodily injury to others caused byRead More
What if I have a lapse in coverage? How do I reinstate? Does it affect coverage of prior acts?
If an Errors and Omissions policy is not renewed on the annual date of coverage, it is considered lapsed. As stated under Prior Acts coverage, E&O coverage must remain constant for claims to be reported for review and coverage is subject to underwriter approval. If the effective date is missed on purpose or by accident, it isRead More
What is Prior Acts coverage?
Prior Acts coverage refers to how far back in time your professional liability insurance policy covers you for services you rendered to clients. The Prior Acts date is the inception date of coverage. As long as a policyholder has maintained continuous Errors and Omissions coverage from that date, the E&O policy in place at theRead More
What is a tail or tail coverage?
Tail coverage or Extended Reporting Period Terms provide 1, 2, or 3 years of continuous E&O coverage after your Retroactive or Prior Acts date. This is not renewal coverage, but an extension of the currently bound E&O coverage. Tail coverage is frequently used if you are leaving or retiring from real estate or selling yourRead More
Should I purchase an agent policy if I’m covered under my broker’s policy?
Many agents choose to purchase their own policy to cover activities not covered by their Firm’s policy, to reduce their retention (out-of-pocket claims expense), to ensure you’re protected should your Firm’s coverage lapse, or to offer CRES warranties, Seller’s Protection Plan, and other benefits to clients. An agent policy also covers past sales, as longRead More
Who is covered with a firm E&O policy?
Under the policy of a Corporation, S-Corp, or LLC, the firm as an entity is covered as a named insured. Under the firm, the principal broker and any agents “hanging” their license under the firm’s license are covered for any E&O claim.
What activities are covered?
All professional services listed on the Declarations Page of your policy are covered. CRES Errors and Omissions insurance can cover you for: Residential real estate sales Residential property management and leasing Residential appraisal Residential mortgage brokering Commercial real estate sales Commercial property management and leasing Escrow (broker-held or third-party) Through our online system, you canRead More
Who needs coverage within a real estate business – firm, broker, agent?
Everyone should have coverage when transacting Real Estate Sales, Appraisal, Property Management, or Mortgage business. The following is a breakdown of who and what is covered under each entity form: Firm: Firm, Broker, Agent and all employees Broker: Broker, Agent Agent: Agent
What is E&O?
E&O stands for Errors & Omissions, and is often referred to as professional liability insurance. Any mistake made in the process of conducting your business activity carries liability. If someone finds that you breached your duty or failed to disclose aspects of a real estate transaction, Errors & Omissions insurance is designed to cover theRead More