Title agents work with mortgage lenders, real estate agents, and buyers to manage transactions, making sure titles and liens are in order and helping obtain title insurance. When you work as a title agent, your business could be affected by unexpected events as a lawsuit filed by a dissatisfied client or a fire that destroys your office. Business insurance is a smart choice that can provide protection from the financial losses that could occur if a catastrophe strikes.

What insurance coverage do I need as a title agent?

There are many types of insurance available, but these types of coverage are particularly important for title agents to consider:

Errors and Omissions Insurance

Errors and omissions insurance (also known as professional liability insurance) provides coverage if you are sued due to negligence, mistakes, or omissions in your professional work. As a title agent, you are responsible for managing major transactions, and there could be severe financial repercussions for clients if a mistake is made. If you fail to notice a problem with a title or make a mistake when transferring funds or filing paperwork, you could be sued. Errors and omissions insurance provides financial protection from these risks. 

Example:

• One of your employees inadvertently fails to fill out and file necessary paperwork, preventing a property sale from being completed correctly. You are sued for negligence. Errors and omissions insurance would cover the lawsuit. 

Commercial Property Insurance

Commercial property insurance covers the value of your business’s property, including office space, furniture, office supplies, computers, and other items. This coverage can protect your offices if a disaster occurs and your business property is damaged or destroyed. Commercial property insurance will provide funds to replace or repair property damaged by a covered peril, which commonly includes fire, explosion, storm, vandalism, and more.

Commercial property insurance covers the following:

• Buildings belonging to or leased by your company
• Contents of the building, including furniture, equipment, and tools
• Property of others while it is under your care, custody, or control

Example:

• Lightning strikes your offices, causing a fire to break out. The fire damages the roof of your building, as well as destroying valuable computer equipment and office furniture. Commercial property insurance would pay to repair your building and replace damaged office equipment and furniture. 

General Liability Insurance

General liability insurance covers third-party bodily injury and property damage risks. Although working as a title agent is not typically physically dangerous, there is always a possibility of accidental injuries or property damage occurring when clients visit your offices or when you visit other locations. If an incident occurs, general liability insurance can cover medical costs, legal fees, and settlements. 

Examples:

• Bodily injury: While leaving your office, a client slips on ice outside your doorway and falls, breaking an elbow. General liability insurance would cover medical costs as well as any legal expenses if the client sues. 
• Property damage: While meeting with a client, a title agent spills coffee on the client’s expensive, brand-new laptop. General liability insurance would cover the damages. 

Commercial Crime Insurance

Commercial crime insurance can protect your business from financial losses related to crimes such as theft, burglary, robbery, forgery, and fraud. Both third-party crime and employee dishonesty are covered. Since title agents often handle important records and major financial transactions, there’s a greater risk that employees may commit a crime. 

Although you can reduce the likelihood of employee dishonesty with thorough background checks and security practices, it’s impossible to completely eliminate all risks. Commercial crime insurance can provide coverage in case your business suffers losses due to employee fraud, theft, or crime.

Example:

• One of your title agents is found to have misappropriated thousands of dollars in escrow funds. Commercial crime insurance would cover your company’s losses.

Cyber Liability Insurance

Cyber liability insurance can protect your business against losses caused by cyberattacks such as hacks, data breaches, denial of service attacks, and viruses. As a title agent, you likely store sensitive financial records and personal information for your customers, and many title agents handle financial transactions as well. This can make your company vulnerable to attacks from hackers and other cybercriminals. Cyber liability insurance can provide protection from these risks. Coverage for social engineering may also be available by endorsement.

Example:

• Hackers access your company’s servers and steal large amounts of sensitive customer data. You are sued for failing to protect this data. Your cyber liability insurance would cover the lawsuit.

Business Owner’s Policy

A business owner’s policy combines general liability, property, business income, and extra expense coverage into a single package. For small or midsize title agencies, this type of insurance could help you obtain a wide range of coverage. Premiums for a business owner’s policy are typically cheaper than the cost of buying each coverage separately.

Additional Coverages

• In almost all states, workers’ compensation insurance is legally required for companies with employees. It covers the medical expenses and lost income of employees who are injured or fall ill while working.
• Hired and non-owned auto coverage may be necessary if you or your employees drive personal vehicles for work purposes. Personal auto insurance may not be sufficient to cover the expenses if an accident occurs while driving as part of the job. 
• Employment practices liability insurance protects your business against lawsuits by employees who accuse your business of wrongful treatment, including discrimination, harassment, or other employment-related issues.

Pricing and Quotes

Pricing for business insurance will vary based on the type of insurance coverage and the risk profile of your business. Insurers consider factors such as:

• Business size
• Industry
• Location
• Number of employees
• Claims history

Businesses with higher risks will have higher premiums than those deemed lower risk. For example, a title agency with a history of frequent claims will face higher premiums. Premiums also rise as you increase the limits of insurance. Different insurance companies have different models for rating risks, so it is worth comparing pricing across different insurers.

In order to get an accurate estimate on pricing, it’s best to get a quote from a reputable insurance company. Below we’ve highlighted a few of our trusted partners who offer coverage for title agents:

Provider	General Liability	Professional Liability	Business Owner's Policy
Embroker	??	??	??
CoverageSmith	??	??	??
CoverWallet	??	??	??
Hiscox	??	??	??
Thimble	??	??	??

Final Word

Purchasing the right insurance coverage can protect your title agency from a variety of major risks. Business insurance can help you deal with unexpected disasters such as a lawsuit brought by a dissatisfied client, a fire that damages your offices, or a client injury that happens on your property. The right insurance coverage can give you and your clients confidence that your company will be able to weather any major incidents.