Errors & Omissions (E&O) insurance is one of the most important coverages a title agency can have. It is designed to defend your business and help cover financial losses if you’re accused of making an error or omission while providing your professional services.

But here’s a question many title agents never ask:

Does your policy actually cover all of the professional services your agency performs?

The answer isn’t always yes.

E&O insurance, also known as professional liability insurance, provides defense costs and financial protection if your agency is held liable for a mistake, oversight, or alleged negligence while performing professional services.

Whether a claim has merit or not, legal defense can be expensive. An E&O policy helps protect your business by covering eligible defense costs and, when applicable, settlements or judgments up to the policy limits.

However, having an E&O policy isn’t enough. The real question is whether that policy has been written to match the work your agency performs every day. 

One of the most important sections of any E&O policy is the definition of “Professional Services.”

This section determines which activities the insurance company agrees to insure.

Many title agents assume that because they purchased E&O insurance, every service they provide is automatically covered. Unfortunately, that isn’t always the case.

Some policies simply state that coverage applies to services performed as a title agent. While that may sound comprehensive, the insurance company’s definition of a title agent may be much narrower than the services your business actually provides.

Today’s title agencies often provide a wide range of services beyond issuing title commitments and title insurance policies.

Depending on your operations, your agency may also perform services such as:

• Title search and abstract services
• Closing and settlement services
• Escrow administration
• Notary services
• Mobile or remote signing agent services

 If these services are not clearly included within your policy’s definition of professional services, there may be gaps between the work you perform and the coverage you’ve purchased.

Take a few minutes to review your current E&O policy.

Specifically, locate the section that defines Professional Services and ask yourself:

• Does this definition accurately reflect everything our agency does?
• Are all of our revenue-generating services included?
• Have we added services over the years that may not be reflected in our policy?
• If a claim arose from one of these services, would we have coverage?

These questions can help identify potential gaps before they become costly claims.

​An E&O policy is intended to protect your business when mistakes happen. But that protection only extends to the services your policy agrees to insure.

As the title industry continues to evolve, agencies often expand their offerings to better serve clients. Unfortunately, insurance policies don’t automatically evolve with them.

While this isn’t the only step needed to determine if you are properly insured, reviewing your professional services definition is one of the simplest and most valuable steps you can take to help ensure your coverage aligns with your business.

If you’re unsure whether your current E&O policy properly reflects the services your agency provides, our team is happy to help.

We can review your existing coverage, identify potential gaps, and help you understand whether your policy aligns with your day-to-day operations so you can have greater confidence that your agency is protected when it matters most.

A policy review today can help prevent unexpected coverage issues tomorrow.