Posted by terrie/IN on 8/21/12 10:51pm
Msg #431402

E&O Insurance

I have a question I have a 5,000 policy and this company is wanting me to get 25,000 policy to work for them. Do I need to go through original company that I am with now or can I choose another company to get the additional coverage?

Reply by Jered Morgan on 8/21/12 11:16pm
Msg #431403

I don't see any reason why you wouldn't be able to just purchase a second policy through another company unless there is some law prohibiting it or it is against the terms of your first policy.

Reply by JanetK_CA on 8/21/12 11:23pm
Msg #431404

Ask the person you bought your current policy from and whoever else you're considering for a policy with higher coverage. If you want to add on to what you have vs. just buying a new, larger policy for the same time period, my guess is that you'd have to stay with your current carrier.

Reply by Jack/AL on 8/22/12 12:29am
Msg #431406

I did what you're considering, less than 24 hours ago. Did it right here at Notary Rotary. Alabama previously required only $10,000 of E & O. It now requires $25,000 of E & O for renewals and for new commissions. My commission is still good for 3 more years, so I did not have to increase the amount. Like you, I'm signing up with some TCs that require $25,000, so I just ordered mine on NotRot. I just ignored the existing $10,000 from a local company, and asked NotRot for a 3 year policy which begins today and goes for the remaining three years of my commission. When ordering, you can choose 1, 2, 3, or 4 year period, and the beginning date. Within one hour, I had confirmation of the comleted order, with policy information coming to me by regular mail (but you can choose delivery by other methods.).

Reply by MW/VA on 8/22/12 6:51am
Msg #431413

IMO NR is the best source for E&O ins. They allow

you to choose the start date of the policy, and will email you the policy same day, if you choose. I only purchase one year at a time.
BTW, I didn't know you could purchase E&O insurance through multiple policies. I thought I read somewhere here on the forum that was a no-no.

Reply by Lee/AR on 8/22/12 7:03am
Msg #431414

Re: IMO NR is the best source for E&O ins. They allow

Might be a state-specific thing, but I doubt it. Anyway, AR only requires $7500 Bond and some Bond co's also include 'free' E&O in that amount--so that's what I had. A couple of companies required a minimum of 10K E&O, so I purchased an additional (think it was 5 or 10k) E&O thru NR---and the companies accepted the combined total.

Reply by terrie/IN on 8/22/12 7:20am
Msg #431415

Re: IMO NR is the best source for E&O ins. They allow

thank you guys for all your input. I will be purchasing additional insurance right here at not rot.

Reply by Linda_H/FL on 8/22/12 7:39am
Msg #431416

Jack...Alabama requires E&O? Or are you

confusing E&O with the bond?

Reply by Jack/AL on 8/22/12 9:29am
Msg #431422

Linda H/FL --- It's E & O.

The paperword is clearly labelled "Errors and Omissions Individual Liability Policy." It reads like an insurance policy, too.

Reply by Linda_H/FL on 8/22/12 9:35am
Msg #431423

Sent you a p/m n/m

Reply by Linda_H/FL on 8/22/12 7:40am
Msg #431417

I don't believe you can stack policies.

You can increase the limits of your existing coverage but I don't think you can buy multiple policies to equal the amount you need (stacking). At least that's how I understand it.

Reply by MW/VA on 8/22/12 11:00am
Msg #431432

I'm sure that's what I've been told also, and even NR

has to revise mine a bit to show it was a renewal rather than a new policy.

Reply by Jered Morgan on 8/22/12 12:43pm
Msg #431443

Re: I don't believe you can stack policies.

Right, I don't think 'stacking' would work. (i.e. if you needed $25k, $10k on one carrier, $15k on the other to make the difference). But if you already had $10k and needed $25k, and it was cheaper to purchase a policy for $25k out right then buying the additional $15k policy, that is what I would think would not be any issue. Obviously you can't file 2 claims to 2 companies for the same incident.

Reply by Gregory/CA on 8/22/12 8:15am
Msg #431419

When I increased my E&O insurance I went to the original carrier. They prorated the rate I originally purchased and applied the balance toward the additional years. IMO it is best to go back to the originating carrier to finish out the term and to get a little cost savings through pro-ration.

Reply by BrendaTx on 8/22/12 12:20pm
Msg #431441

Msg #409631

Cannot stack them.