Client Data Loss Not Covered by Homeowners

The Seventh Circuit United States Court of Appeals has ruled on a disagreement between an auditor and her personal insurer over client data that was stolen from her possession.

The accountant had a disc with 30,000 individual names and social security numbers of a pension fund she was working for in her car. When the disc was stolen the pension fund paid over $200,000 to provide legally required services to the people involved and came after the accountant to reimburse them for their expenses.

The accused attempted to submit a claim under her home owners insurance policy, which the Seventh Circuit ruled did not provide coverage.

InsureTitleAgents.com helps it’s clients that with the growing costs of protecting confidential data. Virtually all insurers have denied coverage for these types of claims under their policies. Working with an expert broker like InsureTitleAgents.com can ensure the coverage you need is place when a claim is presented.

Employment Practice Claims – 3 Items Every Title Firm Should Consider

As the new year begins, many firms take time to assess their internal policies and risk management practices. One risk that is often ignored by title agents and title firms is employment practice liability. This is due to the fact that most title firm asre small, hire independent contractors, are sole practitioners, outsource any necessary human resource functions and the office staff is usually minimal. Firms view employment practices liability insurance (EPLI) as unnecessary. However, there are three dynamics that must be assessed.

  1. Mid to large title agent practices that do employ a number of individuals should consider EPL Insurance. The exposure a firm of this size has needs to be addresses by an insurance agent and the firm.
  2. Small firms who may only have family or close friends as employed staff might not have a great need for EPL insurance. A discussion with a insurance agent familiar with this insurance should occur to assess whether the benefits outweigh the expense, or if this risk is better to be self-insured.
  3. All firms need to be aware that EPL insurance covers some perils and situations that even independent contractors will encounter. A contractor experiencing discrimination may sue the a title firm that did the discriminating. An EPLI policy can be worded to provide coverage for a situation such as this.

As 2013 rolls forward, consider whether employment practices liability insurance is right for your title firm. Contact a broker to discuss additional ways to protect your firm against wrongful employment claims.

Prison Time for Defrauding Lenders

A married couple were hit with $16.6M in restitution for defrauding lenders, the husband was sentenced to 7 years in federal prison and the wife to 1 year.

“Co-conspirators, such as Brenda East, 51, assisted these ‘straw borrowers’ with providing false information and documents, including bogus tax letters and false verifications of bank balances and employment, to induce lenders to fund residential home purchases.”

Contact InsureTitleAgents.com to better protect your organization.

Company Overcharging for Title Insurance Fights Class Action

In the ongoing case against First American Title Insurance Company, the class certification is being fought by the company.  First American is being sued for allegedly overcharging its customers for title insurance – in violation of the State of California statutes.

InsureTitleAgents.com explains that when a large number of plaintiffs alleging the same wrongdoing each file a lawsuit, these claims are often consolidated into a class action lawsuit.  The “class” is comprised of each plaintiff seeking damages for the same error.  It is more efficient for the courts – and faster for the plaintiffs – to hear a single class action than to hear 100 or more individual cases.

Class action claims are rare, but they bear the risk of being expensive to defend, and expensive if a company is found guilty.  It is important to have the proper levels of insurance in place to deal with your firm’s specific risk profile.  Contact us today to discuss ways to adequately protect your business.

 

 

 

 

Malpractice Claim Denied Due to a Lack of Expert Testimony

A New York Federal court dismissed a lawsuit brought by a bankrupt company against its law firm.  The plaintiff alleged that services the firm rendered were incorrect and helped contribute to the bankruptcy.  The court dismissed the claim after the plaintiff failed to produce expert testimony and evidence that this was an accurate allegation.

This case brings to light the benefit of carrying insurance.  Even though this was a groundless claim, an errors and omissions insurance policy would provide defense and help a firm navigate the legal waters surrounding a lawsuit.  InsureTitleAgents.com reminds all clients to quickly report claims and to purchase a policy that provides broad coverage.  Contact us today to learn how to better protect your firm.

Ohio Title Agent Loses Appeal

An Ohio Title Agent was sued was allegedly stealing money from her escrow account by the title insurance underwriter who had to cover the loss. Shortly after it was discovered the agent and her husband were divorced and the agent transferred three properties to husband.

The title insurer sued the agent for fraud, theft and breach of contract. They also sued the ex-husband for fraudulent transfer of the properties. The courts ruled against the agent but denied the claims against the ex-husband. On appeal the lower courts decision was reversed and the ex was found liable.

The ruling is here.

Contact InsureTitleAgents.com today to better protect yourself against allegations of wrongdoing.