Posted by BetsyMI on 4/16/07 9:26am
Msg #185411

Interesting article about E&O coverage

Take a look at this article about understanding E&O coverage:

http://blog.sourceoftitle.com/index.php?cat=22

It also talks about 'tail coverage' for the five years after you leave the business but when you may need it most!

Reply by Stamper_WI on 4/16/07 9:59am
Msg #185418

"tail" coverage

I learned by example about tail coverage when I was a realtor. My old broker retired and did not get that. He was sued for non diclosure of lead base paint on a deal done by one of his agents.( She did not have the buyers sign a LBP disclosure). This had major repurcussions on the buyers small children who all had high levels of lead detected in their systems and the accompnaying ailments.
When I left real estate I bought that coverage. It cost me a lot but the peace of mind is worth it.

Reply by Sharon Taylor on 4/16/07 11:21am
Msg #185431

Thanks for the link, Betsy

I hadn't really thought much about the need to continue E&O coverage after retiring or leaving this line of work, and I certainly did not know it would not cover the final year of work once you let it lapse or cancel it. I don't intend to retire or quit anytime soon, but now I know I need to keep my coverage going for a few years after that happens. Great information!

Reply by NCLisa on 4/16/07 11:41am
Msg #185435

Abstractors have a completely different kind of E&O

insurance. It is liability insurance, and the cost starts at $2200 a year. The amount of coverage is usually $500,000 to $1,000,000.

Reply by Dennis D Broadbooks on 4/16/07 11:45am
Msg #185437

This is Misleading...

...IF you're referring to the general "run of the mill" Notary E&O Insurance policy. While I don't have access to the policy language of every Notary E&O Insurance policy being written, I can read mine & it's definitely an "occurence" type of policy. Here's the verbiage in my policy pertaining to whether it's "claims made" or "occurence":

"POLICY PERIOD: This policy applies only to negligent acts, errors, or omissions which OCCUR (my emphasis) during the Policy Period..."

I also take exception to the inference that ALL E&O policies are "claims made". Occurence type E&O policies are written on a regular basis. Yes, you do need to make sure you know which type you have when you purchase E&O. I'd venture a guess (only a guess!) virtually all of you have an occurence type policy on your Notary E&O. If anyone would care to participate in a little exercise, I'd like to have as many of you who have easy access to your Notary E&O Insurance policy to read the policy period provision to see if it contains the word "occur" in the language & let me know here on the board what you find.

As is my MO (not Misssouri, but modus operandi) please don't construe my opinions here as legal OR insurance advice. I've been licensed as a property & casualty insurance producer in Missouri for the past 30 years & my comments are based on the laws currently in play here.

Reply by SueW/Tn on 4/16/07 11:49am
Msg #185439

Re: This is Misleading...

"OCCUR" here

Reply by Dorothy_MI on 4/16/07 12:02pm
Msg #185445

Occur here too n/m

Reply by Lee/AR on 4/16/07 12:03pm
Msg #185447

Re: This is Misleading...

'occur' here, too

Reply by Chris_NJ on 4/16/07 2:07pm
Msg #185473

Re: This is Misleading...

occur here

Reply by Susan Fischer on 4/16/07 12:07pm
Msg #185448

occur...only if claim/suit commenced during policy period or

during/within applicable statute of limitations pertaining to Insured.

Note: coverage only applies to notorial acts arising out of performance of notorial services in the capacity as a Notary Public.

Don't know the SOL (statute of limitations) for negligence in performing duty as notary...I'll check.

Cheers,
Susie

Reply by Dennis D Broadbooks on 4/16/07 3:46pm
Msg #185488

My Notary E&O Insurance Policy Has Similar Wording...

...but this only applies to any legal limitations (specific to the state you're located in) placed on the time period someone can be sued. States can & do restrict the number of years after the fact someone can be sued for their negligent act. If for example this is 7 years then it becomes a moot point after 7 years have passed as to whether coverage exists because state law prevents someone from filing suit anyway. That policy clause has nothing to do with whether the policy itself is determined to be either "claims made" or "occurrence". The key word to look for in the policy period provision is "occur" as opposed to "filing a claim" during the policy period.

BTW, to buttress the presumption my own Notary E&O Insurance policy is of "occurrence" vintage I called the insurance carrier to speak with one of their vice-presidents. His answer coincided with mine...I do indeed have an "occurrence" type policy. Additionally I asked how one could determine for certain by reviewing their policy what would signify a "claims made" policy. His reply was that a number of states have passed laws stating the words "Claims Made" must be found in bold letters on the facesheet of the policy. Otherwise the language in the Policy Period provision would state the claim must be filed (not occur) within the term dates of the policy.

As always my comments should NOT be construed as legal or insurance advice. If doubts have been raised in anyone's mind with the posting of this article, call your own insurance agent or company for the definitive answer to whether you have an "occurrence" or "claims made" Notary E&O Insurance policy.

Reply by dickb/wi on 4/16/07 1:58pm
Msg #185470

occur here...."which occur during the policy...

period and then only if claim, suit or other action arising therefrom is commenced within the applicable statute of limitations pertaining to the Insured."

Reply by MelissaCT on 4/16/07 9:16pm
Msg #185543

Mine says same as Susan's n/m

Reply by Shannon_Va on 4/17/07 10:03pm
Msg #185744

abstractor e&o

Yes, abstractor e&o is different. I have one million coverage for $1600 a year. And if i leave the biz, i will need a tail end policy. That basically covers me for the future in case someone closes a loan and i missed something on a search that wasnt caught during the transaction I was involved in.
Tail policies are expensive. Usually 175% of your annual premium