Posted by Bill Paul on 1/21/09 5:07pm
Msg #275237

Million Dollar E&O policy

Has anyone else heard anything about underwriters requiring million dollar E&O policies? I'm not trying to start a rumor here but I ran into this one just this afternoon.

Reply by Philip Johnson on 1/21/09 6:20pm
Msg #275241

Big policies make for big targets.

The only company that I can think of that requires $500,000 is Provident. What company wants you to have a $1,000,000 policy?

Reply by Susan Fischer on 1/22/09 2:30am
Msg #275273

Those 'deep pockets.' n/m

Reply by Bill Paul on 1/22/09 5:10am
Msg #275280

Re: Those 'deep pockets.'

A million is a lightening rod and I don't want it but I was just asking. The company was a Commonwealth in Orlando.

Reply by Lee/AR on 1/22/09 1:28pm
Msg #275312

Here's the thing with E&O...

Check the fine print in your E&O policy and you'll probably find a little detail that says 'they, not you' decide whether to pay out or fight it. As it's normally cheaper/easier to pay the claim than pay to fight it thru court, there is no downside to a co. filing a claim against you--even if you did no wrong, it can still be cheaper to pay out than drag it thru court. And it works out for the bank if they can collect, say, even 2% of the claim from your E&O--that reduces their liability...and they'll also hit the Abstractor, Title Co., yada, yada. It just makes sense--for them!