Elder fraud claims
7 April 2022
7 April 2022,
 Off
70 / 100

Errors and omissions insurance covers the cost of any lawsuits if your client claims your work was late, not delivered as promised or finished incorrectly. This professional liability insurance protects you from mistakes or oversights that could lead a client to take you to court for damages. Protect yourself with e&o insurance that will pay for legal expenses.

E&O Insurance protects title agents against these problems:

  • Professional mistakes
  • Claims of failure to deliver promised services
  • Professional negligence accusations

Examples of professional mistakes include:

Wire fraud – Business email compromise (BEC) scams and related wire fraud cause substantial losses. The title agent’s mistake is when he/she doesn’t investigate wiring instructions that are sent by a fraudulent email and this leads to theft by fraud.

Elder Fraud – Recently the title industry has seen an increase in elder financial abuse claims. Elder abuse claims in the past named either the caregiver, relative or financial advisor, who took advantage of the senior’s diminished mental state to steal the victim’s assets. While title agents may have had no direct contact with the borrower and so didn’t know his or her age, they are now often included as collateral defendants in elder fraud lawsuits. The defendants of senior victims are trying to recover the victim’s loss of life savings by including title agents and underwriters in lawsuits. Title agents who neglect to investigate warnings of elder abuse can be liable.

Bankruptcy claims – Minor errors in titles become major errors if not corrected in a timely fashion due to bankruptcy filing. Bankruptcy claims can also happen when a property has a bankruptcy in its chain of title, and the title agent does not review and investigate it.

Probate claims – A problem caused when the title agent doesn’t identify all of the heirs with an interest in the property when there is recent probate in the title history.

Title Search Errors – A common problem in a title search are errors the title agent misses or makes. For instance, if a title agent neglects to search all variations of names such as misspellings, nicknames and aliases for those listed on recorded mortgages and property deeds before ensuring that the title is clear, they can be liable.

Comments are closed.