A title agency provides title insurance services in the form of helping to find and prepare titles for property, as well as liens against property, leases and collateral issues, exchange and sign titles for lender purposes and other title concerns. Title agency business owners and employees requires extensive research and knowledge of various title laws. Risks of a title agency include liabilities, mistakes made during the title process that you could be liable for, and everyday business risks such as damage to your property, fire or flood that could cause damage to original titles in your possession and general liabilities.
Types of Title Agency Insurance
As a title agency, you have a variety of risks you are exposed to and therefore need different types of title agency insurance. These business insurance policies are the most important ones to consider in your area of business:
General liability is the most basic and important of insurance policies for title agencies. You have a variety of liability risks with your type of business, including accidents on your business premises and issues with the services you provide. For example, if while a client is in your office, they trip over a box in the entryway and sprain an ankle, you could be held liable for the medical costs and might also face legal ramifications as well. These costs are covered by general liability.
Professional liability insurance, also called errors and omissions, will protect your title agency from errors made. There is room for human error, though some mistakes may cause severe consequences for your clients. If you are signing over a title and a minor mistake was made in the process, it could mean a lawsuit for your company and loss of your business reputation. Professional liability will help to cover these types of costs.
Many professionals working for a title agency use their own vehicle for meetings with clients, or to simply pick up office supplies. If this is true for you, you should have business auto insurance as a necessary addition to your title agency insurance portfolio. That way if you get into a collision while running a business errand, any damage to your vehicle or the other vehicles involved would be covered, along with bodily injury costs. You can also add vandalism and theft to the policy.
You count on your business office and property to conduct business, so if an unexpected event occurs, it could mean losing business income and paying for damages. With business property insurance, loss or damage caused by a natural disaster, snow storm, fire or flood, would be covered by the policy. This saves you from having to pay for repairs yourself as well as replacing any equipment or materials lost during the event.
Another important business insurance policy for title agencies to have is workers’ compensation. With your type of business, a variety of risks are associated with working as a title professional. Repetitive motion injury is one of the biggest risks, along with carpal tunnel syndrome. If an employee gets a wrist or shoulder injury from performing the same tasks every day, the medical costs are covered by workers’ comp.
Title Agency Crime Insurance
Your title agency is at risk for a variety of crimes, including vandalism to your business property, dishonest employee acts like embezzlement of money, and theft of materials in your building as well as forged payments by clients. Protect your business from crimes like these with a crime insurance policy.
Protecting your business, employees and clients should be top priority; you can do this by getting a wide range of title agency insurance policies to protect each risk and avoid financial struggle.