Your title agent clients play an integral role in the homebuying closing process. As their insurance agent, you- and your clients - know that things can go wrong – even in escrow. From a miscalculation in closings costs to an error in the documentation process, these mistakes can hurt the homebuyer and leave your title agent clients exposed to a lawsuit.
The title process is an essential part in purchasing a home and protecting your clients’ role in this situation is critical. Over the past few years, the market has changed significantly creating new risks and challenges associated with real estate closings.
The Right E&O is a Must
Title Agents Errors & Omission (E&O) insurance protects the title agent’s business against baseless and legitimate claims. Commercial General Liability insurance is not enough. An E&O policy covers many of the items that a CGL policy does not, such as performance disputes, errors, and other liability issues.
An E&O policy should provide your title agency clients with much needed protection if/when a claim arises against errors in their title documentation process, including escrowing and searching. It should include E&O coverage for insured professionals like escrow agents, title agents, title searchers, abstractors, notaries, and more.
How’s the Market?
Whether your client is an escrow or title agent, notary public, or title examiner, they can be liable for any errors during the closing process. And the mistake could have a negative impact on a homebuyer’s wallet as well.
The only way to protect your client’s business or one of their employee’s personal finances is with liability insurance that covers legal defense costs and any resulting judgments against the title agency, including court costs, up to the coverage limits of their policy.
The hard market is now in its third year, so you should anticipate fewer coverage options from the limited number of specialty underwriters available, which makes the search for the best – and most affordable – coverage even more challenging.
What should you look for in an underwriter?
Find an underwriter who specializes in Title Agents E&O, in addition to:
Carrier. Make sure the carrier they represent is highly rated and is considered reputable in the Title Agent sector. Look for an A.M. Best rating of A- (Excellent) or better.
Experience. Find an underwriter who specializes in Title Risk and managing complex and innovative insurance plans for their clients, including an underwriter with the creativity and flexibility to build the right coverage for you.
Expertise. You need an underwriter who understands the homebuying process and can customize the right coverage with significant provisions for continuity of coverage, limit of liability, deductible, and extended reporting period.
Getting started
At Vanguard Specialty, we leverage our more than 100 years of combined experience in E&O insurance to develop, manage, underwrite and distribute innovative insurance products and services for our carrier partners.
If your insurance agency handles the insurance for title agents, please contact Cindy Magana, Title Agents E&O Manager, Vanguard Specialty, at cindy.magana@vanguardspecialty.com or 470-807-6968.