Four Tips for Selecting the Right E&O Carrier – Tip #3

Guy Chipman from the Texas Association of REALTORS® wrote a well-received article entitled “Errors, Omissions, and Lawsuits, Oh My!” on the key lessons he learned while looking for an E&O provider. We will be posting one tip per week from Chipman’s article, with Pearl’s comments in italics. See what Pearl E&O coverage offers.

3. Look carefully at prior-acts coverage. Most E&O policies provide coverage on a claims-made basis rather on an occurrence-basis. That means they cover only claims made during the life of the policy, regardless of when the alleged injury occurred. Some claims-made policies exclude all prior acts from coverage; some cover acts that occurred within a specified time before the policy was created; and others provide full coverage for prior acts. When changing carriers, be aware of when one policy expires and a new one takes effect to avoid gaps in prior-acts coverage.

If you opt in to Pearl’s E&O emails and include the expiration date of your current coverage, Pearl will send you no-obligation reminders as your current policy expiration date draws near. Our representatives would be glad to help you switch your coverage to Pearl in a timely manner, to avoid any gaps in coverage. We also match realtors’ prior-acts coverage, when they switch their E&O coverage to Pearl—another way to avoid any coverage gaps.

Have you ever struggled with an E&O agent unable to meet your needs? How do you pick the right E&O Provider? Let us know by posting a comment below!