What type of insurance must a person have to perform a title search if they are not an agent or employee of a title insurance agency?

To perform a title search independently, individuals who are not agents or employees of a title insurance agency are required to have errors and omissions insurance. This specific type of insurance protects against claims of negligence or failure to perform professional duties in title searches. By having this coverage, the title searcher is safeguarded against legal liabilities that may arise from mistakes or oversights in their work, which could potentially result in financial loss for clients relying on their expertise.

The minimum coverage limit specified, such as $25,000, ensures that the title searcher carries a specific amount of protection to cover potential claims, thereby providing a measure of security for both the searcher and the public in real estate transactions. This requirement recognizes the importance of professionalism and accountability in the title search process as it underpins the reliability of title insurance and real property transactions.

While other types of insurance, such as liability insurance or general business insurance, may be beneficial in various contexts, they do not specifically address the particular risks associated with performing title searches. Property insurance is likewise unrelated to the professional conduct involved in title searches, which is why errors and omissions insurance is the appropriate requirement in this scenario.