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Five things you need to know about your Professional Liability Coverage
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What is title E and O insurance anyway?
- Why do Ii need errors & omissions insurance?
- What does the policy cover?
- Are there different types of policies?
- How do I know what”s right for me?
- How difficult is it to get covered?
- Are there payment plans available?
- Is there any other coverage I need?
Errors & Omissions coverage, or E&O for short, is also called
professional liability insurance. It is standard for title underwriters
to require title agents to carry this insurance, as it protects title agents
from losses stemming from lawsuits or claims due to errors in any part
of the title documentation process. It is important to realize, however,
that this coverage is not just a requirement, or a business expense. You
are buying protection, and that protection goes way more than just payment
of a settlement or claim. In fact, many claims are found groundless after
a discovery period.
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WHY DO I NEED ERRORS & OMISSIONS INSURANCE?
Besides
fulfilling the requirement of your underwriter, the policy will protect
you from lawsuits in which your company is named, regardless of
your involvement. More and more the real estate industry is seeing title
agents named in lawsuits. Al Santoro spoke at the MARCH 2008 agency section
meeting for The New Jersey Land and Title Association. He stated claims
for title agencies have risen from 3 % to 12% in the last few years..
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WHAT DOES THE POLICY COVER?
The coverage will pay the settlement up to the policy limit,as well as the
defense costs you can incur if a claim is made against you or your company.
This is a broad explanation of the coverage, however, as the policy will
vary between companies in the definitions, exclusions, and endorsements.
It is very easy to get errors and omissions quotes and coverage, but you
want to talk with an insurance professional to see what options are best
for you.
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ARE THERE DIFFERENT TYPES OF POLICIES?
Policies vary widely between carriers, with different deductible options,
claims-made coverage vs. occurrence coverage, defense costs inside or
outside the limits, etc. Some companies may quote with first dollar defense,
meaning a deductible is required only if a settlement is reached. There
are also claims-handling differences between companies. The list goes
on. Choosing the right agent who can find the best product for you is
the key- and you are in the right spot!
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HOW DO I KNOW WHAT”S RIGHT FOR ME?
It is not your job to know this information. It is mine- I have spent time
getting to know title agents in the area, and have spent time learning
about the industry. I can protect your company and show you options to
help you make an educated decision on your insurance. In a time when
title agencies are getting leaner and mitigating overhead costs, it is
easy to look for cheaper coverage as part of the budgeting process. Don’t
sacrifice your coverage for a few hundred dollars- talk to me. I can
help you reduce your premiums and in many cases broaden your coverage.
Otherwise, you will just be throwing money away instead of putting it
towards a product that will best protect your company from a potentially
devastating financial burden of dealing with an uninsured claim. Protect
yourself and call me for a free consultation.
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HOW DIFFICULT IS IT TO GET COVERED?
It is easy to get started. Call me, or submit your information online and
I will call you! Or, you can simply download the application online,
complete it, and send it to me. I use an application that has been carefully
crafted to address all aspects of a title agent’s job- including
escrowing, searching (even if you are hiring independent searchers),
and providing title insurance. I have access to many markets, and will
submit your account to the ones best suited for your agency needs. Then,
I will present these options in an excel spreadsheet format, so it is
easy to understand and compare coverages. I will sit down with you and
go over your options, and help you make an educated decision. You are
paying for this coverage to do business- it should protect you if you
have a claim!
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ARE THERE PAYMENT PLANS AVAILABLE?
Most professional liability policies are paid in full upon initiation,
however Pavese-McCormick offers a financing plan that allows our clients
to make monthly payments, with a 25% deposit. This plan will be presented
automatically as an option.
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IS THERE ANY OTHER COVERAGE I NEED?
Yes of course! You will need general liability and property insurance
to cover your business, as well as workers compensation. Pavese-McCormick
offers all these coverages, and can bundle it together. These are offered
by companies automatically on a flexible payment plan. We also offer homeowners
and personal auto insurance as well, and can host seminars for employees
who are looking for an analysis of their personal coverage.
And then there is, of course, the ocverage that trancsends industry, and
that is Employment Practices Liability. As a businessowner with at least
1 employee, this coverage is crucial in protecting you and your company
from employee-related lawsuits, e.g. wrongful termination and age discrimination.
Check out my podcast on the website and listen to how this coverage can
protect you from EEOC related claims.
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Errors
and Omissions Insurance 
