How much does an error cost? Protect yourself from everyday risks

Jun 17th, 2021 | By FCT

When you have a law practice, even one misplaced word can cost hundreds, even thousands of dollars. These are some real examples of innocent mistakes—and their consequences—we’ve seen recently:

• A lawyer registered a mortgage with a fixed rate instead of the variable rate the parties had agreed to, so the mortgage had to be re-registered.

Cost: $200

• A lawyer sent their client’s property deed to registry but forgot the legal description of the property, so it was rejected and the lawyer incurred a late filing penalty with interest.

Cost: $540

• A lawyer didn’t properly relay the wire transfer information for a refinance deal, so interest started accruing on the mortgage.

Cost: $1,182

• A lawyer missed the letter with the final closing date on a home so extension fees to the seller kicked in.

Cost: $2,500

Mistakes like these happen every day, and the time, stress and money they cost your practice can start to seem like just another cost of doing business. What if it didn’t have to?

Now, you can get even more protection by adding our Deal Protection Endorsement to every title insurance policy you order.

When Errors and Omissions coverage isn’t enough

Deal Protection Endorsement applies to the specific policy, not to your overall FCT E&O coverage, and in the case of a claim, coverage is triggered before E&O Extra or E&O Complete. That means claims covered under Deal Protection Endorsement never count towards your E&O claims limits. Also, the claim limit under Deal Protection Endorsement is equal to the  policy amount, so it can easily cover claims of $10,000 or more.

Deal Protection Endorsement protects against losses due to:

• Errors or omissions in the review of the agreement and documents related to the purchase or financing of the land
• Errors or omissions made in the statement of adjustments
• Failure to conduct title or off-title searches prior to the date of policy
• Failure to obtain additional documents
• Incorrect advice on how to take a title

How much does Deal Protection Endorsement cost?

• $25 for a purchase transaction with two policies
• $20 for a purchase transaction with one policy
• $10 for a refinance transaction with one policy
• $5 for any additional policies

Sign up for Deal Protection Endorsement and gain more protection on every deal you close.

 

Insurance by FCT Insurance Company Ltd. Services by First Canadian Title Company Limited. The services company does not provide insurance products. This material is intended to provide general information only. For specific coverage and exclusions, refer to the applicable policy. Copies are available upon request. Insurance brokerage services by FCT Insurance Services Inc.  Some products/services may vary by province. Prices and products/services offered are subject to change without notice.