Hello All,

It has been awhile! There have certainly been many changes in the professional liability world, as it seems carriers are responding to an increase in claims surrounding the real estate industry.

It appears a new trend is in the title agent professional liability industry; some companies are placing an independent contractors exclusion onpolicy forms. Some carriers are making this form mandatory, and others will remove it if specifically requested. Left on the policy, however, it can mean that any mistake and resultant claim arising from searches performed by an independent abstractor would not be covered under a title agent’s errors & omissions policy.

I am inspecting all renewals and new quotes for evidence of this exclusion. It is important that you review your coverages on all renewals and ask your agent to ensure your coverage is comprehensive. It may mean a switch in carriers, or a change in premium, but it is imperative to review your title agent exclusion forms and endorsements on the policy.

Please keep this in mind as your coverage comes up for renewal. I know we are all trying to cut costs, but this exclusion would be significant if you use independents, especially ones without their own professional liability in place.

If you have any comments or questions, please feel free to post them here, or contact me directly. Please also spread the word; everyone should be aware of this change.

As always, best to all!

Robin
Professional Liability Specialist for Title Agents