Your Errors and Omissions insurance policy contains specific language defining what is covered as professional services under your policy. Most of our title agent clients have a professional services definition of “title agent services,” leaving the definition broad enough to cover many of the miscellaneous related services they provide.
In recent years, there has been an increase in professionals providing services in multiple related roles within the real estate industry. This is outside of what an insurance company considers title agent services. As we are seeing more claims being examined for title agents, there seems to be a greater grey area in determining the professional role rendered at the time of loss. If the services may instead be considered that of an attorney, real estate broker or financial advisor, coverage under your title E&O policy will not apply.
It is important to know both the definitions and exclusions of your E&O policy so as to be certain you have coverage for the services you are providing. If you are acting in a dual or multi professional role, you will likely need to carry multiple professional liability policies.
If you are unsure of how your professional services are currently being defined or how they may be limited under your existing policy, please contact me to review your coverage.