e & o insurance

I don't undestand what time period we are paying for? Is it the time we are covered and the time of the transaciton, or does it only cover our current brokerage term life??????

I think you need to read the contract with the company you use. Each company will have their own restrictions, imo. Judy

Cecelia, I think you might need to be a little more specific in your question.

I'm not a e&o insurance expert, I learn something new every year about e&o. But, since no one else has responded, I'll give it a whirl.

I'll assume, for the purposes of my response, that your meaning if you purchase an e&o policy what's covered and for how long. If you purchase a "claims made" policy, you would be covered for any claims made against you for the duration of the policy, usually 1 year. That would mean, anyone who filed a claim against you for, let's say, a property sold 3 years ago, would be covered under your current policy. If you cease to pay for e&o insurance, you would not be covered unless your purchased coverage that would carry over for past transactions after you were no longer purchasing a yearly policy.

I've seen a lot of agents/brokers who have retired or gotten out of the business who never thought about carry over insurance then later learn that they are not covered because they did not have a current policy. Just because you had e&o insurance at the time you sold the property does not mean that you will always be covered for THAT transaction.

There are several different types of coverage. I am not familiar with the coverage were you pay a fee to e&o every time you sell a house. Maybe that type of coverage covers you for that house for ever? Maybe someone else can comment and clear this up.