Frequently Asked Questions
- Mold Endorsement: This important option now offers limits beginning at $100,000.
- Subpoena Assistance: No-cost legal assistance—$30,000 per policy period—for when you are not party to the claim.
- Free 3-year Extended Reporting Period: New policy provides free 3-year tail for death, disability, or retirement when insured with us for 4 years.
- Loss Mitigation Credit: Exclusive to Pearl Insurance—firms may receive credit for use of an experienced short-sale mitigation service resulting in reduced short-sale claims.
- Network & Privacy: Get protection if private client information is lost or stolen from your networks and more—a $25,000 sub-limit built into the policy!
- Not-for-Profit D&O: Exclusive to Pearl Insurance. Get Directors & Officers (D&O) Liability Insurance protection for not-for-profit activities.
- Agent-Owned Property: Get immediate coverage—no waiting period applies!
- Early Claims Resolution: Provides deductible reduction—now for defense and damages—when a claim is closed within 12 months.
- Open House Property Damage Coverage Option: Up to full policy limits.
- Network Risk and Privacy Endorsement: included at no charge!
The above features are available for only the following states: AL AZ AR CA CT DE DC FL GA IL IN KS ME MD MA MI MN MO MT NV NH NJ NC OH OK OR PA SC TX UT VT VA WA WV WI
5 Riskiest Practices in Real Estate Today
Paul Espinosa of Pearl Insurance shares the five riskiest practices in real estate today.
Click a link below to jump to that tip in the video!
- Agent Owned Property
- Dual Agency
- Disclosure & Documentation
- Distressed Properties
- REALTORS® Not Being REALTORS®
Taken from GRRA Realtor Report in March of 2011.
Sample Risk Managers
Here are some samples of the risk management material available to our customers. When you become a customer, you will gain access to the whole archive of Risk Managers and articles. If you are a customer, click here: Customer Access Risk Management Material
Broker Taking on Project Manager Role Results in Litigation October 2011
Gaps in Agent’s Purchase and Sale Agreement Result in Legal Action August 2011
Agent Unwittingly Binds Client to Sales Contract April 2011
Agent Offers Legal Advice to Sellers of a Murder Scene November 2010
Going by Seller's Word Nets Agent Dual Lawsuits August 2010
Frequently Asked Questions
How can I reduce my risk?
You can reduce your risk in many ways. Some key risk reduction techniques include maintaining well-documented files of all transactions with your clients, never interpreting conditions of the property—leave that to the professionals, and always recommending a professional home inspection and warranty to your clients. Pearl also provides extensive risk management tools and services to help real estate professionals effectively minimize their legal liability. These include monthly Risk Managers and various articles addressing issues you and your firm face on a daily basis.
How can I reduce my premium
Pearl has developed many innovative rate credit features to help you reduce your E&O premium, including:
- Attend Risk Management Seminars. Not only will you learn why risk management is important to your firm, but we'll also provide you with 12 key risk management techniques you can begin implementing that same day.
- Maintain an Office Procedures Manual. A good training manual will not only help new real estate professionals acclimate to the field, but seasoned agents will also benefit from having a standard set of procedures in place to help ensure compliance in all client transactions.
- Offer Home Warranties. By offering your clients a home warranty at the time of purchase, you are shifting some of the risk to the warranty company for possible problems that could arise with the house that first year.
- Earn Professional Designations. If 15% of your firm earns professional designations, you will be eligible for additional premium credits.
- Use standard forms from local and state REALTOR® associations. By using standard forms from local REALTOR® boards, you can eliminate some risk factors by making sure your transaction forms and documentation are complete and up to par.
What determines my annual premium?
Your firm will be given an initial base rate that is determined by state-by-state experience. From there, the rate is modified to reflect a number of risk factors, including the individual characteristics of your firm, past claims experience, risk management practices, the number of professionals you need to cover, and the limits, deductible, and breadth of coverage you request.
Why should I choose Pearl as my provider?
Since 1979, Pearl has been one of the nation's leading providers of Errors & Omissions Insurance. In fact, we were among the first to offer a truly successful professional liability program customized for the unique needs of real estate professionals. Today, our program is sponsored by over 40 national, state, and local real estate associations.
Our program—underwritten by the "A" rated (by A.M. Best) XL Insurance companies (through Greenwich Insurance Company and Indian Harbor Insurance Company)—offers one of the most comprehensive E&O coverages in the marketplace. And our commitment of working hard, working smart, and working together ensures that we will not only continually bring you the best products and services available, but also equip you with the right tools and support to maintain your competitive edge.
Is Real Estate E&O coverage really essential?
Whether you're new to the real estate industry or have been in the business for years, the risks you face every day make you a prime target for lawsuits. Over the past two decades, your chances of being sued have risen dramatically. Even if your name is cleared, the time taken away from your business, money spent on defense, and added stress of handling the situation can prove to be taxing.
That's why choosing an Errors & Omissions program that meets the needs and budget of your firm is essential. E&O Insurance helps ease the burden by responding to, defending, and sharing the monetary risks for whatever claims are brought against you.