Posted by RickinVA on 10/19/07 12:27pm
Msg #217323
E & O Insurance
I did a search and gleaned a little info, but...
Received an email from a SS asking me to apply. It required me to sign an agreement which was not at all onerous and very general to fill out a profile. It also asked for bond and E & O info. I sent everything back with an indication that I had no Bond or E & O. (Not required in my state) Since E & O is so limited when it comes to SAs, I choose not to have it, and only one other company has ever asked for it. That company continues to use me even though I ignored their request. I assume many people have it. My questions are:
How many SAs know they have lost business because they do not have E & O?
Has anyone ever heard about, or experienced, a loss that was ameliorated by having it?
For those who have it, have you considered canceling it? Why?
Rick
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Reply by JanelWI on 10/19/07 12:33pm
Msg #217324
What do you mean Notary E&O Insurance is limited?
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Reply by Sylvia_FL on 10/19/07 12:36pm
Msg #217325
Notary E&O is limited. It will only cover errors and omissions in notarial acts. It does not cover you as a signing agent, only the notarizations performed.
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Reply by JanelWI on 10/19/07 12:40pm
Msg #217326
Yup, that is right, I guess I didn't think of it much beyond the notarizations. Does anyone carry any additional General Liability/E&O for their business to cover beyond what Notary E&O Insurance covers?
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Reply by Elaine Sedlock on 10/19/07 12:41pm
Msg #217327
I initially opted not to have it but the very first assignment I received required me to fax a copy of it to them. I told them I would then scrambled to get it right away. I called a couple places but they couldn't give me any proof of having it immediately and by the time I finally found a company who promised they would fax proof to me w/in an hour I bought it. Turned out they didn't fax the proof and I went on with my assignment without it. The company hasn't said another word about it and have continued to call me. My state doesn't require it either so I'm curious to see what responses you get to your question.
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Reply by Loretta Reed on 10/19/07 12:48pm
Msg #217330
I have e&o, I am a full time abstractor as well as a signing agent. I pay about $2,400 a year for this. My insurance company attached a rider to my abstractor e&o for the notary ins.
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Reply by Sylvia_FL on 10/19/07 12:58pm
Msg #217338
Elaine
You are correct that Florida doesn't require it, but it is prudent to get it. I got the maximum I could. When my current commission expires I will be getting the E&O insurance through NotRot.
Your notary bond only protects the public, and if your bond was ever paid out then you would have to pay that money back. Errors and Omission insurance protects you. Can you really afford not to have it. (rhetorical question as I see you did buy E&O)
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Reply by Elaine Sedlock on 10/19/07 1:26pm
Msg #217348
I definitely believe it's good to have, I just wasn't wanting to spend the money at that time. I've read some horror stories about notaries screwing up and the price they paid and wouldn't want to be in their shoes. Better to have and not need than need and not have.
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Reply by Sylvia_FL on 10/19/07 1:28pm
Msg #217350
"Better to have and not need than need and not have"
Yup - just like husbands
Signed
Anonymous
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Reply by Phillip/TX on 10/19/07 2:05pm
Msg #217355
I have E & O, always have, but then I am an Insurance Agent, so I have seen what can happen.
I do remember one TC asking me for $100,000 in E & O and I wondered WHY???? I cannot understand what the need for that amount is, but they did request it, and I never supplied, and have not heard from them again, but then that does not mean much to me, as I know several people that work there, and I know that they do not have a lot of business in my area at this time.
It is always better to be safe than sorry.....
And as far as the husband thing... hmmmm I won't touch that one!!
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Reply by Elaine Sedlock on 10/19/07 2:21pm
Msg #217361
I'm trying to stay away from the husband thing too. It's tempting though!
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Reply by Alice/MD on 10/19/07 2:42pm
Msg #217372
Here in Maryland I carry E&O in addition, to having $100,000 Surety Bond as required in order to get a Title Insurance Producer License. And companies ask," why is your fee higher than others".
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Reply by Julie/MI on 10/19/07 3:50pm
Msg #217377
This can be state specific as far as e & o for notary appointment.
I have $8,000 of e & o only because it was free with my $10,000 bond, which runs through the end of my commission in 2011. I think it was about $49. A bond IS required in my state, E & O is optional.
since E & O only covers notary error, not SA error, I didn't purchase more because I don't make notarial mistakes. Since 2001, I have not had any company drop me or not use me because I didn't have e & O.
I have heard some companies may want more coverage, but I sleep at night just fine.
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Reply by LKT/CA on 10/19/07 3:53pm
Msg #217379
In California, a $15,000 bond is required but E&O insurance is not required but I know of one Notary who was asked by a particular SS if she had $100K E/O and when she said she only had $25K of coverage, she said she was bypassed for that signing. I personally carry the maximum E/O coverage because I have a home and other assets to protect.
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Reply by Yoli/CA on 10/19/07 3:59pm
Msg #217381
Same as LKT/CA for me. Too much to lose. n/m
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Reply by Phillip/TX on 10/19/07 4:29pm
Msg #217390
Re: Same as LKT/CA for me. Too much to lose.
Well my company E&O for my insurance business would step in and handle anything that might arise, but like an earlier poster... since 1999 I have never made a mistake that would have ever made the E&O come into play anyway, and I am a diligent notary today, and I have no worries in that either.
But I do carry general liability and E&O insurance in the amount of $1,000,000 each, but that is not just for my notary, that covers my insurance business as well. So I too have to much to lose, but I still have to ask the question, of why a TC would ask a notary for $100,000 limit in the first place.... and I have been in insurance for 24 years and I am not sure that other than online that you can buy such a policy, as no agency that I am aware of has a company that will issue a Notary E&O Insurance policy in that excessive amount.
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Reply by Julie/MI on 10/19/07 5:59pm
Msg #217427
I should also clarify while I wait for docs to print..
I am NOT on title to my home and Michigan Law states notarial acts do not nullify a document.
So if I screwed up notarially there is no harm done anyway. I'm sure some attorney could find something to sue for, but again, I have not lost any sleep.
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Reply by LKT/CA on 10/19/07 9:51pm
Msg #217475
Re: I should also clarify while I wait for docs to print..
I read your profile and it is impressive, you have quite a resume. However, IMO the first three sentences make the profile sound smug and self-righteous. You were once a newbie and had to pay your dues so please don't knock other newbies who have to learn their way. Not sure if your state is community property...if it is, you don't have to be on title for that asset to be attacked.
A good profile highlights one's OWN best qualities....it doesn't point the finger at and attack others.
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Reply by LKT/CA on 10/19/07 9:40pm
Msg #217470
Re: Same as LKT/CA for me. Too much to lose.
Great that you are so confident in your abilities. But...addressing your philosophy: Since 1986, I have never had an auto accident (and then it was only a slight fender bender) and only rec'vd one traffic ticket in 25 years of driving, but does that mean I should only get the minimal auto coverage? Of course not. I get higher limits with an umbrella policy......excessive? NO, because I have a home (and let me add, a growing business) and OTHER assets to protect.
I suspect TC's ask about E/O coverage because they do care. There hasn't been one SS, T or E company website that I signed up with that didn't ask the dollar amount of the E/O.
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Reply by Ernest__CT on 10/19/07 8:54pm
Msg #217461
You can't afford NOT to have E & O Insurance
Yes, E & O insurance covers only notarial acts, not Notary Signing Agent stuff. No argument there.
If there is an issue with a document that you notarized, you can bet that you're going to be part of the court proceeding. The E&O insurance MAY help you defend yourself.
In CT there is NO LIMIT to the Notary's liability. That means that if I were to blame for a problem, then the litigant would own everything I had, and likely would have claim against any money I made in the future.
Excessive E&O amounts are ridiculous.
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