Being an escrow agent is a huge responsibility. You are thoroughly in charge of money and/or property for a transaction you are not a direct part of. Any mistakes on your part could cost someone else dearly. An escrow agent needs protection in the form of professional liablity insurance.
Insurance for Escrow Agents
A job this important with this much risk requires escrow agent E&O. In real estate, as in any other business, things can and do go wrong. When that happens, the injured party seeks restitution and generally files a lawsuit. For an escrow agent, some of these things include:
- Deed fraud or not finding a deed entry
- Not finding a land subdivision
- Not finding a mortgage assignment
- Not finding a probate or will entry
- Wrong or inadequate documentation
- Not finding encroachments, liens, easements, or encumbrances
- An incomplete title review
- Performing a search on the wrong land parcel
- Breach of contract
Any of these mistakes could happen through a mere oversight and not any malicious action on your part. Nevertheless, you could be sued. This is why errors and omission insurance is so important.
As an escrow agent, you have a vital job in the real estate field. When something goes wrong, you could be held liable. Protect yourself with E&O insurance.