What is Prior Acts/Retroactive Coverage?

Prior Acts is a date provided on the policy. The Prior Acts date is the furthest date an occurrence (or potential claim) can have occurred. If the date is shown as “not applicable” (Full Prior Acts) it means that a claim can have occurred at any time prior to the policy effective date and be reported to the carrier within the policy period. If the Prior Acts date is specified (shows an actual date), it means that the claim had to have occurred after the date specified and be reported within the policy period.

What is coverage for the sale of Agent owned property?

Some policies provide coverage for the sale of agent owned residential property (including the primary residence) subject to the following conditions:

  1. A seller disclosure form, signed by the seller, is provided to the buyer and acknowledged by the buyer prior to closing except in circumstances where the disclosure form is not applicable, such as the sale of estate and/or trust properties;
  2. A home warranty was purchased prior to or at closing; for new homes the warranty provided by the builder is acceptable;
  3. A property inspection was completed on the property; and
  4. A state or local board approved standard sales contract or a sales contract drafted by a licensed attorney was used.

This coverage does not apply to claims made by the original owner of a property alleging inducement by you to the financial detriment of the original owner.

Other options are available for covering these types of transactions. If this exposure applies to you please discuss it with your agent.

What is Fair Housing coverage?

Fair Housing also known as Discrimination coverage can be provided for both defense indemnity of claims that you are legally obligated to pay due to of violations of Title VIII of the Civil Rights Act of 1968 or the Fair Housing Amendment Act of 1988 or any similar state or local law or ordinance.

What is Construction and Development coverage?

There are two different endorsements available for this coverage. These endorsements are:

  1. Construction and Development Property. This endorsement is available to firms that sell properties that were constructed and/or developed by a separately owned entity of the firm. The endorsement completely excludes coverage for the construction and/or the development company.
  2. Family Owned Construction and Development Property. This endorsement is available for those firms that allow their agents to sell properties that were constructed and/or developed by a family owned entity. The endorsement completely excludes coverage for the construction and/or the development company.

What is Environmental Hazards coverage?

This endorsement provides coverage for failure to detect and/or disclose the existence of environmental pollutants. Mold and mildew are exclude pollutants. They will not be covered.

What is First Dollar Defense?

First Dollar defense is a coverage in which the deductible does not apply to the defense cost. The Insured will only be responsible for deductible in the event the claim is settled in or out of court in judgment against the insured.

What is the difference between Claims expenses inside and outside the limits of liability?

In most Professional Liability policies, claims expenses are in addition to the limits of liability. This is called outside the limits. In this instance, claims expenses such as attorney’s fees would not be subject to the limits of liability. In claims expenses inside the limits of liability, the attorney’s fees, etc… would be within the limits of liability. When insurance companies offer both inside and outside the limit options, by choosing to go inside the limits savings can be as much as 7.5% of the annual premium.

Does my Errors and Omissions policy cover bodily injury and property damage?

NO, there is no coverage for bodily injury or property damage in a Professional Liability policy. These are commonly covered under a General Liability policy.