Policies and Procedures
Professional Liability Insurance
Pillar 6
Best Practice: Maintain appropriate professional liability insurance and fidelity coverage.
Policy / ______,(hereinafter “______”)shall carry professional liability coverage errors and omissions insurance so that it has financial capacity to cover its professional services obligations.
Procedures / Appropriate levels of professional liability insurance or errors and omissions insurance help ensure title agencies and settlement companies maintain the financial capacity to stand behind their professional services. In addition, state law and title insurance underwriting agreements may require a company to maintain professional liability insurance or errors and omissions insurance, fidelity coverage or surety bonds.
When there is a change to these policies and procedures, there shall be
  1. Email notification to staff
  2. Review at staff meeting everyone will
  3. Receive a copy of new policy and procedure and
  4. Sign original policy
  5. Training on new procedure as required
All documents are stored electronically on the shared drive
Assessment questions listed at the end of the document.
Requirements:
Maintain minimum coverage of ($500,000), per agency agreement
(Insert title of position) will review the underwriting requirements of agency agreements and state statues annually, prior to renewal. Further, the review will ensure that insurance coverage and bonds meets or exceeds all requirements; and is appropriate given ______size, practice areas, average amount of real estate transactions and volume of transactions.
Copy of most current policy declaration page is attached.
(Insert title of position) will furnish copies of all the insurance policies, declaration page, including all endorsements, and proof of payment of the current premium, applicable bonds to title underwriter(s) and lenders upon request.
Current coverage:
Type of coverage / Company/ Agent / Phone/email / Coverage amount / Ded. amount / Exp.
E & O
Surety
Fidelity
Closing Protection Letter (“CPL”)
CPL will be issued in connection with the settlement funds and issuance of a title insurance policy via ATGF’s (insurer)EPIC® automated Closing Protection Letter system when possible, upon request.
**BONUS Feature** EPIC helps keep you compliant
EPIC® (Electronic Policy Issuance Capability) is Attorneys Title Guaranty Fund, Inc.'s web based underwriting and distribution system used for title and settlement production.
EPIC®requires current Professional Liability Insurance, expiration date and amount of coverageinformationin the user account:
All dates are set to warn the user of expiration at 60 and 30 days. If any expire, the attorney/agent is unable work in EPIC® until the information has been provided to and updated by an Attorneys Title Guaranty Fund employee.
Agent - Provide current insurance information to ATGF.
ATGF employee enters the information in the EPIC® user account:
Professional Liability Insurance and Expiration date
Amount of Coverage
Agent Employees logging into EPIC® - notify the appropriate party responsible for obtaining company insurance.
Independent Contractors
(Insert title of position) will annually obtain a copy of bonds and/or declaration pages from all independent contractors. A copy of the same will be attached to this policy and procedure. Below is a listing of the independent contractors and the status of insurance protection.
Name/Phone / Services / I/B / Amount / Expiration
Contact Officer / (Insert title of position, his/her signature and date)
Date Approved / (Insert date approved)
Date of Commencement / (Insert effective date of policy and procedure; date and how it will be announced i.e. staff meeting; and date of training)
Amendment Dates
Date for Next Review / (Insert date for next review)
Related References and Links /
  • Copy of E&O Declaration page is attached.
  • Copy of the full policy is filed (insert location of the hard copy i.e. in a file called E&O Insurance).
  • Copies of Bonds are attached and additional copies are kept with (insert location of the hard copy i.e. file called Bonds).
  • A copy of each independent contractor’s bond and/or insurance declaration page is attached.

Acknowledgements / By signing below each person does hereby acknowledge that they:
  1. Have read Professional Liability Insurance Policy and Procedures effective (insert effective date of policy and procedure).
  2. I understand Professional Liability Insurance Policy Production/Premium Remittance Policy and Procedures effective (insert effective date of policy and procedure).
  3. I had ample time and opportunity to ask questions in reference to theProfessional Liability Insurance Policy Production/Premium Remittance Policy and Procedures effective (insert effective date of policy and procedure) prior to signing below.
  4. I have completed training on the Professional Liability Insurance Policy Production/Premium Remittance Policy and Procedures effective (insert effective date of policy and procedure).
Name / Signature / Date

ATGF Disclaimer:

These policies and procedures are samples only and may not be used without customization to accurately reflect the agent’s own policies and procedures.