Frequently Asked Questions


1. What is liability?

Liability is the state of being held legally responsible or liable for something.

2. What is Professional Liability Insurance?

Professional Liability Insurance, also known as Errors and Omissions (E&O) Insurance, is an insurance policy that protects an individual or business from the risk that they may be sued and held legally liable for something such as malpractice, injury, or negligence. Liability insurance policies cover both legal expenses and any legal payouts for which the insured would be responsible for if found legally liable.

3. What is the purpose of Professional Liability Insurance?

Liability insurance is very important for those who frequently work with people and may be held legally liable for the injuries of others. Professional liability coverage will help protect the insured from a failure to perform as well as financial loss due to an error or omission for services rendered.

4. What does Professional Liability Insurance cover?

Professional Liability Insurance helps protect professionals from bearing the full cost of defending against a negligence claim made by a client and damages awarded in a civil lawsuit.

5. How much does Professional Liability Insurance cost?

Premiums are determined by a number of the real estate firm’s characteristics including their sales volume and type of transactions, number of agents, claims history, and the firm’s risk management practices. Additionally, the limits and deductible chosen will also have an impact on the final pricing.

6. How do you acquire insurance for a real estate firm?

To receive coverage, simply contact a provider and complete an application for coverage. If your firm has had claims in the past five years, a loss run will be required from your previous carrier(s). It’s important that you discuss your firm’s specific activities with your agent to make sure you are taking advantage of any available coverage endorsements. If you are already covered and getting quotes from other carriers, be sure to provide your current coverage details, including any endorsements, to be sure you are looking at comparable coverage.

7. What are some things to know when starting a small business?

When you are first starting out it’s important to speak with an experienced agent. He or she can direct you to various Business Insurance solutions that will meet the specific needs of your firm. You will want to look at a stable and credible partner like Pearl Insurance, that provides comprehensive solutions for your business needs.

8. What personal attributes will need to be provided in order to obtain insurance?

In order for an agent to receive coverage, they typically will need to provide his or her firm information, the number of licensed agents, previous claim information, and the firm’s gross commission income.

9. What kind of coverage does a single real estate agent need?

Single agents are typically covered under their broker’s policy and do not secure individual policies unless their broker is uninsured.

10. What kind of coverage does a real estate firm need?

Typical coverages for a real estate firm include General Liability Insurance, which covers your physical property and contents, Workers’ Compensation Insurance, Employment Practice Insurance and, of course, Errors and Omissions Insurance.