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Stay Protected with Title Agents E&O Insurance
A home for most represents the largest investment individuals will make in their lifetime. Protecting that investment is key. This where the title industry steps in, playing a critical role by providing a vehicle for the efficient and secure transfer of real estate from buyer to seller. Included in the industry are escrow agents, abstractors, attorneys, title insurance agents, and title insurance companies who work to provide title insurance.
But like any other profession, things can and do wrong, which is why Errors & Omissions (E&O) insurance is must-have coverage for title agents and others. This is where NewMark steps in with our professional liability expertise and specialty insurance markets.
E&O insurance provides protection from losses arising from lawsuits alleging errors in part of the title documentation process, such as searching, escrowing, etc. Coverage is designed to provide indemnification in the event of final settlement, up to the policy limit, as well as payment for defense costs. But there are many factors to understand about E&O insurance, which is why it’s important to work with experienced professionals such as NewMark to secure the right policy for you.
Inside an E&O Insurance Policy
An E&O policy is typically written on a claims-made basis. This means that a claim has to be reported during the policy period. Some claims-made policies may include retroactive coverage, which is when the coverage would begin. It’s important to take note of both the policy’s retroactive coverage date and when the current policy period expires. To close any gaps, the coverage must be in force when the claim is made and date back to the retro date.
It’s also important to understand the policy language and how professional services are defined. Policies differ from one insurer to another, therefore language may be included that doesn’t apply to a specific business. We can review this with you.
In addition, who is covered on the policy is also important. Some policies may not cover work from independent contractors; some do so but also want the contractor to have his or her own insurance, while other insurers mandate what limited liability coverage they have. Again, this should be reviewed in detail.
You also want to review the possibility of adding an extended reporting period (ERP) endorsement to the policy, which will continue coverage into the future for work done in the past. This is important, for example, for title agents retiring. An ERP is available usually for a period of time, such one or three years.
We’re ready to work to protect you, your assets and your reputation.
Give us a call at (877) 630.1107 or email us to discuss how we can customize a professional liability program for you.