How Errors and Omissions Insurance Protects Title Agencies
Making a professional mistake, or just being accused of one, can result in legal claims or lawsuits. As a title agent, your clients expect superior performance and error-free results. That said, some clients do not hesitate to take legal action if they believe they’ve suffered financial losses. This can be due to advice or services your title agency provided. When you’re working in the title industry, you need errors and omissions insurance to help protect your agency against risks.
Errors and omissions insurance for title agents provides protection against claims alleging errors in the title documentation process. It covers expenses related to claims about financial losses and damages due to faulty or bad advice, inadequate or negligent work, clerical or administrative mistakes, misrepresentation, or breach of fiduciary duty. An E&O insurance policy would cover the cost of hiring an attorney. It also covers out-of-court settlement, damages if found liable for financial losses of your client, court expenses, and other related costs.
Provides Financial Protection from Lawsuits
No matter how much you strive to do your best for your clients, mistakes happen. And sometimes, unsatisfied clients take issue with the service or advice you’ve provided and file a claim. This leaves your business open to large legal costs and compensation claims, which can put a dent in your income if you have to pay out of pocket.
With effective errors and omissions insurance, you have the peace of mind knowing that you’re covered against legal claims. Your professional liability insurance will cover defense costs such as attorney fees, court costs, and damages.
Shows a High Level of Professionalism
Errors and omissions insurance for title agents can do more than protect your agency against claims. It can also give your clients more confidence in your professional services. When you carry E&O insurance, it sends a message of professionalism to your clients. It communicates that you take pride in the work you do and value your professional reputation.
E&O insurance also lets them know that you’re likely to be careful in the work you’re doing for them and that your title agency is capable of backing up the quality of their work. Some clients might choose your title agency over an insured one because they know they’re protected if something goes wrong.
Allows You to Find the Right Attorney for the Job
Valid or not, E&O claims equate to significant expenses. When you don’t have errors and omissions insurance or enough business savings, you might find yourself having to represent yourself or hiring an inexperienced attorney. Lawyers, especially those with a great track record and years of experience, can be very expensive to hire.
Having E&O insurance for title agents means that you won’t have to worry about representing yourself or finding the right attorney.
Protect Against Bankruptcy or Business Closure
When a client sues a title agency for damages and financial losses, it’s not always clear how the case will end.
But what if the case goes to trial and the court renders a huge judgment? A judgment has to be adhered to, but is your business liquid enough to pay for the awarded damages? Or, will selling your agency or personal assets be enough? If the answer to these questions is “No” then you might end up declaring bankruptcy.
Errors and omissions insurance keeps you from having to bankrupt your title agency to settle or pay for a viable lawsuit. Depending on your professional liability coverage, deductibles, and limits, your insurance will cover all or part of the costs relating to the claim.
In the long run, errors and omissions insurance for title agents is all about risk management. You make a small upfront payment to avoid facing an astronomical and crippling amount down the line.
Protect Your Business from Financial Ruin
Attorneys First Insurance empowers you to protect your title agency by providing the right-fit errors and omissions insurance coverage. This will keep your business protected against losses resulting from E&O claims. We offer better coverage at lower rates and better terms than other providers.
We tailor coverage to your specific business needs and guarantee considerable savings with our insurance. Contact us today for a quick quote. We’ll ensure you don’t pay for any policies you don’t need.