Due to the litigious nature of society today, professional liability insurance (aka E&O) has become increasingly important in many industries, especially the Title Industry. While it may not be mandated by every state, E&O Insurance is increasingly being required by the major Title Insurance carriers and lenders across the United States.
Your E&O policy is designed to protect you against claims for which you become legally liable to pay due to allegations of an unintentional error or omission by you or one of your employees. Professional liability policies are written on a claims-made and reported basis, covering claims that occur subsequent to the retroactive date stated in the declarations and which are first made against you and reported to the company while the policy is in force. For this reason, maintaining prior acts coverage is extremely important. Without prior acts coverage, your covered acts are limited to those performed and reported during the current policy period only. While switching carriers, please be aware of the significance of the retroactive date in your policy.
When seeking Professional Liability insurance, it is easy to be misled by some carriers offering a much lower premium than you had paid previously. We’d advise you to be very cautious in this situation. It is common for these policies to be written retro-inception (with no prior acts coverage).
We also encourage you to read all the forms and endorsements on your policy and be aware of any title specific exclusions that could impact your coverage.