The Value of Escrow Security Bonds for Your Lender Customers

More than ever, lenders are requiring title and attorney agents to maintain insurance coverage to protect against settlement funds theft. While agents may have crime coverage through other forms of business or liability insurance policies, many times it will not protect settlement funds from theft. In addition, in the new regulatory environment, crime coverage may not be enough to meet lenders’ needs.

The Escrow Security Bond, offered by Stewart Specialty Insurance Services®, is a unique fidelity bond underwritten by Lloyd’s of London®. It protects agents from financial loss due to fraudulent activities, including settlement funds theft. This bond benefits lenders by providing coverage to the agent if they are held liable for one of these types of issues/claims:

Computer crime rider

If someone gains unauthorized access to your company’s computer network, this enhanced coverage safeguards settlement funds.

Cyber liability – consumer data security

In the event data is stolen from your company and used to steal customers' identities, this optional enhancement provides coverage.

Employee theft coverage

You know your employees are trustworthy – lenders don’t. This coverage gives lenders peace of mind that their funds are protected in case of employee theft.

Partner/principal owner theft coverage

While this isn’t a concern to most title professionals, lenders need this coverage to make sure funds are secure in all possible scenarios. Even if a lender has a closing protection letter from an underwriter, this is still not enough. Partner/principal owner theft coverage provides the comprehensive protection lenders are looking for.

To succeed in the new regulatory environment, you must be able to show lender customers and prospects that you have the necessary tools to provide settlement fund security. The Escrow Security Bond can help you achieve this and secure your place in the real estate transaction for as little as $130 per month.

For more information on the coverage offered by the Escrow Security Bond, call Stewart Specialty Insurance Services at (866) 845-4676, or visit