Title Agent Fidelity Bond Policy
Working with an experienced surety broker can provide an edge in obtaining the best results for placing and pricing for your title agent fidelity bond policy. Mark Levinson, Senior Vice President of Surety, has extensive experience in providing this type of bond. He has developed strong relationships with the leading surety bonding companies to supply our clients with access to more favorable terms and conditions. In many cases, we can provide both the bond and the fidelity crime policy with one application.
What Is a Title Agent Fidelity Bond Policy
This title agent fidelity bond policy is also referred to as a fidelity bond, surety bond, fidelity crime policy, and fidelity policy. Regardless of the name, this product protects a title agent’s clients and their lenders from the dishonest acts and financial losses the title agent can cause. These accounts can swell to high levels during peak periods of activity, so as a result most lenders—and many states—require that this coverage be in place.
Because this can be a difficult class of business to get placed, title agents will want to work with an experienced surety agency like Brunswick Companies to make certain their bond and policy meet state and lender requirements for coverage.
How Much Does a Fidelity Bond Policy Cost?
The exact cost is a fraction of the total amount of the coverage but that amount varies by state. For example, a title agent fidelity bond in Ohio will need to be $150,000, but is $7,500 for agents in Texas. For more information about state requirements, you should visit your state’s website for the most up-to-date information. Additionally, lenders may have a different requirement based on revenues, reported or projected.
Bond cost and subsequent approval is determined by several factors, including the risk and the controls in place to mitigate that risk. The amount of coverage requested, number of employees and prior loss history are also factors. Brunswick Companies can provide you with a quote after they collect all necessary information.
Fidelity Bond Policy Claim Example
A title agent was convicted of theft for mishandling escrow funds intended for closing the real estate transactions of her clients. The agent had illegally closed on the purchase of her own home with her agency providing the settlement services. As part of the closing, she paid about $144,000 to the seller’s mortgage company and about $39,000 in proceeds to the seller using money placed in escrow by other clients. She also paid with the escrow accounts roughly $17,000 for office computer products and supplies for her company. The loss claimed was approximately $360,000.