Best Practice: Maintain appropriate professional liability insurance and fidelity coverage.
Purpose: Appropriate levels of professional liability insurance or errors and omissions insurance help ensure title agencies and settlement companies maintain the financial capacity to stand behind their professional services. In addition, state law and title insurance underwriting agreements may require a company to maintain professional liability insurance or errors and omissions insurance, fidelity coverage or surety bonds.
Procedures to meet this best practice:
1. The company maintains professional liability insurance or errors and omissions insurance.
2. The company complies with requirements for professional liability insurance, errors and omissions insurance, fidelity coverage or surety bonds, as provided by state law or title insurance underwriting agreements.
(Source: American Land Title Association)
For additional resources to help you adhere to the Best Practices, please visit the Best Practices section of the AgentLink site.