The CRES “Per-Transaction” E&O Payment Plan

The Per Transaction (PT) payment plan is a good alternative to the traditional fixed payment plans for some residential real estate and mortgage brokerage companies. It allows you to pay for your Errors and Omissions insurance premium over the term of the policy, in installments, instead of paying for the entire year when the policy starts. Additionally it allows you to be efficient with funds, because you only pay for insurance when you close a transaction, or need to meet your minimum for the month.

Per Transaction FAQs

When purchasing Per Transaction (PT) coverage, how do I get started?

When binding E&O coverage with the Per Tranaction payment plan, CRES collects a security deposit that is equal to 2 times your primary business PT rate. If you renew with CRES into another PT policy, we’ll carry your security deposit to another PT policy for you. Otherwise, you’ll receive the security deposit back when your policy expires.

When are payments due?

By the 10th of each month. You need to pay for all the transactions for the previous month of the policy.

What if I had no transactions for a given month?

If no transactions occurred in the prior month, only the required minimum payment for 1 transaction will be due.

If you have 2 transaction rates (for example, Real Estate Rate and Mortgage Brokering Rate), just pay the miminum  of 1 transaction at your Primary business rate, based on your gross commission income for that business type.

Do you send me an invoice every month?

We send email and mail reminders many times throughout the month, rather than an invoice.

Is it difficult to report these transactions?

Most companies find the system easy to use. The ledgers have the payment instructions on them, and our online forms are safe and simple to use.

Are there late fees if I don’t pay by the 10th?

If your payment is not received by the 10th of each month, a late fee will be assessed.

What if I forget to make a payment?

A certified notice of cancellation will be sent on the 15th (California) or 10th (all other states) of each month notifying you that we have not received at least your minimum monthly payment. Policies will automatically be canceled prior to the end of the month if payment is not received.

However, we have an optional Safe-Pay plan that will cover your minimum monthly payment. You will still need to report and pay the premium for all transactions net of your minimum Safe-Pay receipt amount. Contact your CRES sales representative for more about this coverage.

What if my policy was canceled due to non-payment?

Your security deposit may be used as a minimum payment for any months in which CRES didn’t receive proper reporting of your transactions.

When policies are canceled, you’ll lose the ability to get insurance covering your prior acts with most carriers. Don’t let this happen to you. Your sales representative may be able to help you re-establish insurance coverage.

Are only the Transactions I pay for each month covered by E&O?

As long as you stay current with your monthly Per Transaction E&O payments, you’re covered for properties not yet closed or still in the sales process. So Per Transaction E&O coverage gives you all the protection of a single-premium E&O plan.

Are there any other differences in policies if I choose Per-Transaction E&O?

Per Transaction Errors and Omissions policies for Real Estate or Mortgage Brokerages have minimum retention (out-of-pocket claims cost) starting at $2,500, which may be a higher minimum than with a single-payment E&O plan.