<p> [FIRM NAME]</p><p>BEST PRACTICES POLICY #6: LIABILITY INSURANCE AND FIDELITY COVERAGE</p><p>Best Practice #6: Maintain appropriate professional liability insurance and fidelity coverage. [Firm Name] Policy #6: [Firm Name] has established and will maintain the following procedures and controls relating to professional liability and fidelity coverage.</p><p>PROFESSIONAL LIABILITY OR ERRORS AND OMISSIONS INSURANCE REQUIREMENTS  Corporate title agents have Errors and Omissions insurance policies and lawyer title agents have Professional Liability insurance policies covering their responsibilities as title insurance agents and/or closing agents. The agent’s coverage amount must be acceptable to ATG given the agent’s size, complexity, and scope of operations.  Independent title searchers must have Errors and Omissions insurance policies covering title searching errors.  Comply with ATG’s Audit Department in tracking the information regarding the title agents’ insurance coverage. </p><p>FIDELITY COVERAGE REQUIREMENTS  In Illinois, Wisconsin, Indiana, and Michigan, fidelity coverage is not required by state law and is not required by any contractual obligations between ATG and its title agents.  Obtain Closing Protection Letter coverage through ATG, as mandated by statute for all parties to transactions in Illinois and Indiana.  ATG has fidelity coverage that insures ATG against fidelity losses by its title agents, closers, and employees in all states where it does business. But, it may be prudent for a title insurance agent to investigate whether fidelity coverage is something that they may want to purchase to protect themselves from loss.</p><p>SURETY COVERAGE REQUIREMENTS  In Illinois, Wisconsin, Indiana, and Michigan, surety coverage is not required by state law and is not required under any contractual obligations between ATG and its agents. Therefore, in the states in which ATG does business, the concept of surety coverage is not applicable. </p>