E&O insurance coverage for title abstractors is available in the following states:
Arizona, Arkansas, California, Colorado, Connecticut, Delaware, Florida, Georgia, Illinois, Indiana, Iowa, Kansas, Louisiana, Maine, Maryland, Michigan, Minnesota, Missouri, Nebraska, Nevada, New Jersey, New York, North Carolina,
North Dakota, Ohio, Oregon, Pennsylvania, Tennessee, Texas, Utah, Vermont, Washington, Wisconsin, Wyoming.
What's the Difference between a Title Abstractor, a Title Agent, and an Escrow Officer?
A title agent is an insurance agent who sells title insurance.
An escrow officer handles the transfer of funds and property title between the parties in a real estate transaction.
Title abstractors research the history of transactions impacting the ownership of a property.
The examination performed by title abstractors determines if a property has a free and clear title or if anyone else has a claim on the property.
Title abstractors prepare an abstract of title document which summarizes the history of a property.
Why do Title Abstractors need E&O Insurance?
Title abstractors face a long list of exposures to E&O and malpractice claims, including, but not limited to, the following*:
* The coverage provided by insurance companies is subject to limitations and exclusions. Please refer to the actual insurance policy for details regarding coverage, exclusions, and limitations.
- Incomplete review of title
- Improper or inadequate documentation
- Failure to find land subdivision
- Failure to find deed entry or deed fraud
- Failure to find will & probate entry
- Failure to find liens, encumbrances, easements or encroachments
- Search performed on wrong parcel
- Breach of contract
Even if a title abstractor acted professionally and in good faith during a transaction, he or she can still be sued and could easily face tens of thousands of dollars just in defense costs.
It is therefore vital for title abstractors to have the proper E&O insurance protection.
What Coverage does an E&O Insurance Policy provide Title Abstractors?
Errors and omissions insurance provides coverage for claims made against title abstractors by reason of an error or omission in the performance of professional services.