PROFESSIONAL LIABILTY INSURANCE
Best Practice #6: Maintain appropriate professional liability insurance and fidelity coverage to ensure the financial capacity to stand behind the professional services provided.
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 Alliance Abstract and Title to maintain professional liability insurance or errors and omissions insurance, fidelity coverage or surety bonds.
Alliance Abstract and Title Policies and Procedures for Implementation and Adherence to Practice #6:
1. Alliance Abstract and Title maintains and shall continuously maintain professional liability insurance or errors and omissions insurance in an amount appropriate given the Alliance Abstract and Title’s size and complexity and the nature and scope of its operations. The amount is not less than the amount agreed to in the Alliance Abstract and Title’s contractual obligations to its underwriter and state law, if applicable. This includes but is not limited to:
a. Professional Liability or Errors and Omissions Insurance
b. Fidelity Bond Coverage– If Applicable (Protection for Company Against Employee Dishonesty)
c. Surety Bond Coverage – If Applicable
d. Cyber Fraud / Cyber Crime Coverage – If Applicable
e. Other coverages required by state law or the title insurance underwriting agreements in effect.