What is required for errors and omissions insurance for a title agency?

Errors and omissions insurance for a title agency is designed to protect the agency from claims arising out of negligence, errors, or omissions in the services it provides. In Florida, the law specifies that title agencies must maintain errors and omissions insurance with a minimum coverage amount of $250,000 for each claim. This requirement ensures a substantial level of protection for clients and other parties involved in a transaction, as it helps cover potential financial losses that could arise from mistakes made by the agency.

The stipulation of a minimum amount serves to establish a baseline of reliability and responsibility in the title insurance industry, aiming to safeguard consumer interests and maintain trust in the services provided by title agencies. While there might be a maximum deductible requirement or various other policy options, the core requirement is specifically focused on the per-claim coverage limit to ensure adequate protection against potential claims.