WFG Title Agents Insurance Program wfgagents.usi.biz

Transcription

1 WFG Title Agents Insurance Program wfgagents.usi.biz

2 About The Program Partnership between USI and WFG

3 American Land Title Association Compliance Best Practices of the ALTA Best Practice No. 3: Adopt and maintain a written privacy and information security program to protect Non public Personal Information as required by local, state and federal law. Purpose: Federal and state laws (including the Gramm Leach Bliley Act) require title companies to develop a written information security program that describes the procedures they employ to protect Non public Personal Information. The program must be appropriate to the Company s size and complexity, the nature and scope of the Company s activities, and the sensitivity of the customer information the Company handles. A Company evaluates and adjusts its program in light of relevant circumstances, including changes in the Company s business or operations, or the results of security testing and monitoring. Best Practice No. 6: Maintain appropriate professional liability insurance and fidelity coverage. Purpose: Appropriate levels of professional liability insurance or errors and omissions insurance help ensure title agencies and settlement companies maintain the financial capacity to stand behind their professional services. In addition, state law and title insurance underwriting agreements may require a company to maintain professional liability insurance or errors and omissions i insurance, fidelity coverage or surety bonds

4 WFG Agents Insurance Program Inclusive Of The Indicated Minimum Coverage: Errors and Omissions (Professional Liability) $1,000,000 Coverage Financial Institutions Bond/ Escrow Security Bond/ Form 15 Bond $250,000 Coverage Cyber Liability and Privacy $100,000 Coverage

5 Distribution Of Program Extending Coverage To Agents

6 Title Agents Errors & Omissions Insuring agent s duty to clients Provides coverage for errors and omissions and wrongful acts in the performance of professional services by any insured for a fee in the following capacities: title insurance agent, title abstractor, title searcher, escrow agent, closing agent, notary public, flood zone certifications, witness closer Lack of documentation is the most common reason for submissions of claims, however groundless accusations occur with regularity and incur cost of defense Statutory limits vary by state.

7 Fidelity Bonds Protecting Agent s Assets Provides coverage for direct financial loss resulting from fraudulent or dishonest acts committed by any employee of the title agent acting alone or in collusion with others Most lenders and state regulators require fidelity bonds for title agents Statutory limits vary by state $50,000,000,000 stolen annually from U.S. businesses by their employees 7% of annual revenue is lost due to theft or fraud 75% of employees admit to having stolen at least once from their employer 33% of all business bankruptcies are caused by employee theft Sources: Association of Certified Fraud Examiners, Easy Small Business HR, Institute for Corporate Productivity, Jack L. Hayes International, Inc., Sept 2012.

8 Cyber and Privacy Risks Risks On The Rise Privacy coverage responds to costs resulting from a breach. These types of costs include but are not limited to fraud or theft. Much of the cost of a breach is a result of notification and public relations expenses, as well as loss of business due to tarnished ihd reputation tti and systems interruption. Over 90% of U.S. organizations have experienced a breach 75% of breaches are driven by financial motives 66% of breaches took longer than 30 days to discover 83% of small to medium sized businesses have no formal cyber security plan 71% of small businesses are dependent on internet for daily operation Cyber attacks cost small and medium-sized business an average of $188,242 Over 60% of maliciously victimized small to medium-sized companies are forced out of business within six months of being attacked Sources: 2013 Verizon Data Breach Investigations Report 2011 NCSA/Symantec Survey 2011 Ponemon Institute Perceptions About Network Security Survey

9 Insurance Placement Notes Our Offer To Help

10 Who We Are One of the top ten insurance brokers in North America Nationally, more than 4,000 employees in 126 offices across the country. USI, headquartered in Briarcliff Manor, NY, is ranked 3rd in Insurance Journal's s Top 100 P&C Agencies USI is the 2 nd largest privately held insurance broker in the U.S.

11 Contact Info