Various states around the country require title professionals to carry a surety and/or fidelity bond in order to be licensed as a professional in the state. These bonds are offered through multiple insurance carriers. If needed, a state can make a claim under these bonds to protect its citizens.
- Surety Bond:
- A surety bond is not an insurance product. It is an extension of credit based on the assumption that a title professional will handle their business as required by the state and, due to that, no claim/loss will occur.
- Fidelity Bond:
- A fidelity bond is a lower limit employee dishonesty coverage. The payment of a loss may hinge on conviction of a crime.