Errors & Omissions Insurance for Title Agents
Title Agency Errors & Omissions Coverage
Title Agent Professional Liability Insurance (also known as Title Agent Errors & Omissions Insurance, or Title Agency E&O) protects all types of title and escrow professionals if a client alleges that you were professionally negligent or failed to perform professional duties, or in the case of the failure of your work to perform as promised.
E&O Coverage is available for all types and sizes of title agents, including:
- Title Agent
- Title Examiner
- Escrow Agent
- Marine Title Agent
- Notary Public
- Title Searcher
Title Agent Professional Liability Insurance Protects Your Title Company
The high cost of a legal defense could put your title agency out of business. Your company's survival and your personal financial security depend upon protecting yourself against the impact of a lawsuit. Examples of claims against title agents include:
- A title examiner did not locate several mortgages recorded as liens against a property, which were filed between the examiner's title search and the loan closing. At the loan closing, the title examiner did not update his search, and the seller did not disclose any existing liens against his property. Thereafter, an owner's title insurance policy was issued to the buyer without exception to the existing mortgages. The lender began foreclosure proceedings against the buyer, who filed a title insurance claim under his owner's policy for $400,000 in damages sought by the lender. The title insurance company pursued reimbursement from the title examiner.
- A loan closer performed a closing for a refinance. He calculated the payoff amount of the existing mortgage himself instead of obtaining the payoff amount from the lender. He was incorrect and the existing mortgage was not satisfied. The E&O insurer settled for a total loss of $35,600.
Almost any firm or individual that improperly performs services can cause a client to suffer an economic loss - and mounting a defense is expensive. The impact of even a baseless claim can be devastating. Would your company have the resources and expertise to defend against such a claim? Request a Quote
Why Do I Need Title Agent E&O Insurance?
Mistakes Happen. Even the most skilled professionals are likely to make an error, omission or mistake at some point. From human oversights to miscalculations, many incidents can result in a lawsuit.
You Can't Be All Places At Once. As your firm becomes more successful, you may not be able to personally handle every aspect of each client's title search. Errors & Omissions coverage insures not only your mistakes, but also the mistakes of the employees and independent contractors you hire. Request a Quote
The exposures facing title professionals are changing rapidly. Recent news coverage of foreclosure problems and the crack-down on Wall Street have increased the professional liability exposures of title agents as foreclosure cases come under increased scrutiny.
Title Underwriters may require that you and your subcontractors carry Errors & Omissions insurance. The right kind of E&O policy can protect both the title agency and subcontractors from claims of a perceived error or omission, even if the problem occurs months after the initial consultation. Request a Quote
What Is Covered by Title Agent Errors & Omissions Insurance?
Title Agent Errors & Omissions Insurance includes legal defense costs
- no matter how baseless the allegations. It will pay for any resulting judgments against you, including court costs, up to the coverage limits on your policy.
Often, a claim or lawsuit may not involve a clear error or omission on the part of the title agent, abstractor or escrow agent. There could be a title hazard on a property, but the title insurer may not be responding to the claim because it is not covered. The title agent will likely get named in any suit by the policy holder against the insurer.
Doesn't My General Liability Insurance Provide the Same Protection?
Errors and Omissions insurance coverage is not provided by a Commercial General Liability
policy. Commercial General Liability does NOT provide coverage for errors, contract performance disputes or any other Professional Liability issues. Title agents, escrow agents and other title professionals who have General Liability without Professional Liability (Errors & Omissions) coverage are taking a serious risk. It's like a doctor practicing medicine without Malpractice Insurance. Request a Quote
Customized Title Agent Professional Liability Insurance Coverage
Your Title Agent Professional Liability Insurance policy can be customized to include:
- a business owners package that includes general liability insurance and property insurance
- options including coverage of Personal Injury claims
- defense costs outside the limits of liability
- deductibles beginning at $0
Getting the right level of coverage at the best price. According to a recent issue of The Title Report, the market for title agents and abstractors errors and omissions insurance is shrinking while many of the insurers that remain are raising rates from 5% to 25%. Some insurers have left the market.
Brunswick Companies has a long history of supporting title agents, escrow agents and abstractors in securing coverage. We specialize in professional liability insurance. We have access to a wide variety of top-ranked insurers and the contacts to help you in securing the best rates.
Contact Brunswick Companies today to request an insurance broker / agent professional liability insurance quote.