A California bond of an escrow agent's fidelity bond deductible is frequently required to "fill the gap" in the coverage provided by a commercial crime policy. A fidelity bond generally contains a deductible or retention. This amount is the risk "retained" by the insured and is a normal provision of almost all insurance policies. This California surety bond guarantees payment to the Commissioner of those amounts not covered due to a fidelity bond deductible.
Pursuant to 17310, an escrow agent fidelity bond is required in a form approved of by Business Oversight and filed with the Fidelity Corporation of California. The Fidelity Corporation will respond to claims that are also covered by a member’s (escrow agent's) general liability, dishonesty, or indemnity policy which is applied as the primary indemnity instrument if a loss is incurred. The fidelity bond will invariably contain a deductible with leaves a coverage gap between "0" and the deductible threshold. The Commission therefore requires a special bond form DFPI-EL 303A Bond of Escrow Agent (for Fidelity Bond Deductible) to bridge this gap.
Questions about regulation and application may be directed to:
Department of Financial Protection and Innovation
Financial Services Division, Escrow Law
320 West 4th Street, Suite 750
Los Angeles, CA 90013-2344
*NOTE: Escrow agents are also required to carry an escrow licensee surety bond. Learn more here.
California surety bond leader, Surety One, Inc. is a specialist in both the surety and fidelity bond needs of escrow professionals. We offer bonding of escrow agents and title agents nationally, in Puerto Rico and the U.S. Virgin Islands. Questions about this surety bond? Call us at (800) 373-2804, email us at Underwriting@SuretyOne.com or click here for live chat. A California bond of escrow agent fidelity bond deductible is inexpensive and easy to obtain.
Surety bond application review and quoting are free of charge. There is no obligation to purchase.