What's the Difference between a Title Agent, a Title Abstractor, and an Escrow Agent?

A title agent is an insurance agent who sells title insurance. A title abstractor searches the history and ownership of a property including conveyances and encumbrances. An escrow agent handles the transfer of funds and property title between the parties in a real estate transaction.

Why do Title and Escrow Agents and Abstractors need E&O Insurance?

Title and escrow agents and abstractors face a long list of exposures to E&O and malpractice claims, including, but not limited to, the following:

• Negligent title examination
• Improper or inadequate documentation
• Escrow negligence
• Delays in closing transaction
• Breach of contract

Even if a title agent, escrow agent, or 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 agents, escrow agents, and title abstractors to have the proper E&O insurance protection.

What Coverage does an E&O Policy provide Title and Escrow Agents and Abstractors?

Errors and omissions insurance provides coverage for claims made against title and escrow agents and abstractors by reason of an error or omission in the performance of professional services.