what is a cpl

A CPL, or Closing Protection Letter, is a contract between a title insurance underwriter and a lender. It is also known as an Insured Closing Letter (ICL) in some states. The purpose of a CPL is to provide added protection for the insured party, usually the lender, in case of any errors or omissions made by the title agent during the closing process. The underwriter agrees to indemnify the lender for any actual loss incurred due to the title agents failure to follow the lenders written closing instructions or to comply with applicable laws and regulations. A CPL is issued by the title underwriter and ensures that the underwriter will protect its client from any mistakes made by the title agent.