What is Title Agents Errors and Omissions?
Title Agents Errors and Omissions (E&O) insurance is a specialized policy designed to protect title agents and agencies from claims of negligence, mistakes, or omissions in the services they provide. Since title agents handle complex legal and financial documents, even small errors can lead to costly lawsuits. E&O insurance helps cover legal defense costs and settlements related to these claims, whether or not the claim has merit.
Who Needs It
This type of insurance is essential for professionals involved in real estate transactions, particularly title agents, abstractors, and escrow officers. Many lenders and underwriters require proof of E&O insurance before doing business with a title agency. If you’re handling title searches, closing documents, or escrow funds, E&O coverage provides critical protection for your business.
What It Typically Covers
Title Agents E&O insurance generally covers:
- Alleged errors in title searches or document preparation
- Misfiling or failure to record documents correctly
- Incorrect property descriptions or legal descriptions
- Missed liens or encumbrances in the title history
- Claims of professional negligence or failure to deliver promised services
Common Exclusions and Limitations
While E&O insurance offers broad protection, it doesn’t cover everything. Common exclusions include:
- Intentional wrongdoing or fraud
- Bodily injury or property damage (covered under general liability insurance)
- Employment-related claims
- Claims arising from services not listed in the policy
- Prior knowledge of potential claims before policy inception
Factors That Influence Cost
Several elements can affect the cost of a Title Agents E&O policy, including:
- Your agency's size and annual revenue
- Number of employees and years in business
- Claims history and risk profile
- Coverage limits and deductibles chosen
- State regulations and underwriting guidelines
Proof of Insurance & Compliance
Maintaining active E&O coverage is often a licensing or contractual requirement in many states or with underwriting partners. Proof of insurance may need to be submitted during audits, licensing renewals, or when entering into new business relationships. Be sure to verify your state’s specific requirements, as they can vary.
How to Get a Quote
Getting covered is simple. Start your Title Agents Errors and Omissions insurance quote today by visiting our online quote page.
Frequently Asked Questions
Is E&O insurance required for all title agents?
Requirements vary by state and underwriter, but many title agents are required to carry E&O insurance to maintain licensing or business partnerships.
Does E&O insurance cover intentional fraud?
No, E&O policies exclude coverage for intentional acts such as fraud or criminal behavior.
Can I get E&O coverage if I’ve had a prior claim?
Yes, but the insurer may consider your claims history when underwriting your policy and setting premium rates.
How do I prove I have E&O insurance?
Once you purchase a policy, your carrier will issue a certificate of insurance that you can provide to underwriters, lenders, or regulators.
Does E&O insurance cover escrow services?
It may, depending on the policy language. Be sure to confirm that escrow services are included in the scope of coverage.
Still have questions? Talk to a local insurance expert.