Title Agents Business, and How To Keep Your Clothes On?

Really, really good agents can sometimes get in trouble through simple misunderstandings and missed communications. Sometimes that can happen with customers, and sometimes with brokers or carriers. I'm aware of a couple of situations recently that have popped up and need to make you aware so you don't find yourself with your pants (skirt, shorts, etc) around your ankles.

Most title agencies have some escrow exposure, it's just a part of what they do. While I understand that some professionals involved with title work do not have any involvement with escrow, they're in the minority.

At least one carrier has developed an endorsement to be included on the E&O policy issued to title agency businesses. That endorsement includes wording that basically says there's no coverage for ANY escrow transaction. According to a friend of mine on their book, at least two different agencies are about to find out how good their own E&O policy and carrier are, as two different claim scenarios have developed that the insurance carrier is denying on the basis of the endorsement wording.

Fortunately we didn't handle these accounts so I'm not sure which part of the "chain" failed, but I'm well acquainted with the carrier and I'm pretty sure it wasn't them. They provide all wording and endorsements with their quote, so likely either the agent or the broker failed to clearly communicate this limiting wording to their customer. And even if they did, it makes no sense to sell a title agency a policy that doesn't offer coverage for escrow transactions. That's almost like selling a restaurant a policy that excludes cooking.

(Yes, I know some "restaurants" don't cook anything. Don't be distracted by my analogy - since this is a claims made policy, even for those rare cases where the exposure doesn't exist now, if they ever did any escrow work in the past there's no coverage for that either). Now apply that to a title agency that doesn't currently do escrow work but did so in the past and their E&O policy has a 1996 retro date. That's a major problem if there's no escrow coverage now.

If you're not sure about the options available or would simply like to discuss the account(s) you have now, let us know. We're interested in staying fully dressed, just like you.

Have We Got A Great "Combo" For You

(The combo pictured isn't what we're offering, but if you write enough of this business with us you never know!)

We have a new product that could be very helpful to you, especially if you have a client that needs E&O and GL and your standard market can't provide that option. And even if they can provide the option, you may want to make sure your client knows if the limits are shared or not, and if the E&O coverage is a broad or restricted form.

One of our non-admitted markets has given us the go ahead to offer a combination policy that provides claims made E&O plus occurrence form GL.

The highlights are as follows:

• Minimum premiums start at $750
• Limits to $5 MILL are available (for qualifying risks)
• Carrier is AM Best rated A++ XV
• GL per ISO 12-07 edition
• Quotes provided from any carriers E&O app

Additional coverage options are being discussed, like Hired and Non-Owned Auto and Employee Benefits Liability. Both would be offered at a sub-limit. We're not there yet but as soon as we get the OK to add those coverages we'll notify you.

Contact us for more information.

Home Run!

Banner of Babe Ruth at "New" Yankee Stadium, Summer 2010

We've always represented some very strong carriers and products for E&O, Professional Liability, and D&O/EPL. With the emergence of the Technology and Environmental markets we've continued to add products. Over the past year or so we've added some new markets and products and have just done so again in the past couple of weeks. In looking at our market selection and products I think we've hit a home run.

The most recent additions include two carriers. One is a smaller, more agile E&S carrier that is capable of writing various Miscellaneous E&O risks, Architects and Engineers, Social Services and Allied Medical.

The other facility is an AM Best rated A XV carrier that is looking for all manner and types of Miscellaneous E&O including testing labs, spa services, safety consulting, employment agencies, claims adjusters and on and on. They are also non-admitted, but don't let that put you off. Their policy form is cutting edge and gives you a unique advantage over your competitors. The standard unendorsed policy provides the following:

• defense costs in addition to the limit


• innocent insured provision


• crisis management, PR or legal firm costs up to $25K to maintain public confidence in the insured's operation in the event of a covered loss


• loss of earnings coverage and disciplinary proceedings coverage (sub limits apply)


• no hammer clause (the most liberal consent to settle* wording available

In addition these and other carriers offer coverage extensions for Intellectual Property coverage, Sexual Abuse and Molestation , Contingent BI/PD and others on selected or qualifying classes.

If your client or prospect is providing medical or healtchare related services, social services, consulting, design, engineering or other professional services we're ready to help. Call us for more information or to discuss your client's business operations and how we can help increase your batting average on both new and renewal business.

*see this post link below for more info on consent to settle/hammer clause, or find the post dated July 15th headed Lawyers Coverage Part III)

http://tuscanopro.blogspot.com/2010/07/lawyers-professional-part-iii-coverage.html