Posted by Susie_UT on 8/28/12 9:10am
Msg #432207

E & O for Provident

Does anyone know where to buy $500K E&O insurance? I want to do closings for Provident without a SS so I need the high limit of E&O bu I can not find anything higher than $250K.

Reply by A S Johnson on 8/28/12 9:41am
Msg #432217

From a Notary of 16+ years and a signing agent for 13+ years does the lack of companies who supply this amonut raise any questions?
What is Provident trying to accomplish with requiring a individual Notary to carry this amount?
Who does E & O insurance protect? You are the company you are contracting with?
Have you read any of the comments about Provident on this form?
Just questions for you to think about.

Reply by Pro Mobile Notary on 8/28/12 10:06am
Msg #432219

Provident is not the only lender that requires a minimum of $500k for a signing agent to sign their docs. North American Title has recently made a requirement of a minimum of $500k of E&O just to be on their approved individual signing agent list. It is the wave of the future for the industry. My guess is they want to reduce the use of part-time signing agents that would not be willing to incur the additional costs of higher coverages. I see signing agents profiles on this website with as little $15k of E&O.

It does not matter what we think of their requirements. If you want to dance you have to pay the piper.

There are many companies that issue E&O policies for more than $250k. We carry $1 million in E&O and get it from State Farm Insurance. CNA, Travelers and many others also offer these policies.

Reply by Linda_H/FL on 8/28/12 10:24am
Msg #432221

Considering the limitations of Notary E&O Insurance insurance

I personally think it's a waste of money - just paints a huge bullseye on the notary's back.

If Provident wants that kind of coverage, then the TC or SS that handles their loans should provide the umbrella for their notary agents.

JMHO

Reply by Gail Owen Jordon on 8/28/12 11:22am
Msg #432228

Re: Considering the limitations of Notary E&O Insurance insurance

Actually, the signing companies/legal groups take that responsibility, it is accepted by Provident and I won't close a Provident Loan if that isn't the case. They are particularly difficult to deal with as well ... Provident.

Reply by Pro Mobile Notary on 8/28/12 10:25pm
Msg #432331

Re: Considering the limitations of Notary E&O Insurance insurance

If you do a provident signing through a notary signing service you are under their E&O policy or the doc signing will not be accepted by the funder at Providence if the NSA does not have $500k in coverage/

Reply by A S Johnson on 8/28/12 10:42am
Msg #432224

I was asking questions that I have had answered for me.
Other questions were who can file on my E & O policy and what does it cover (what am I gettin for my money?).
In Texas State Farm insurance does NOT provide coverage of E & O for Notaries or as for that matter for thier agents.
I will not get into a taking about what I think were out industry is going.
I have NO problems with Provident, but you state , the "Provident" in Cal requireing the $500,000 E & O, is an industry leader. I don't know the "Provident" business structure, but I have a Provident office here, in Weatherford Tx, that claims NO relationship to the one in Cal and this office does not require that amount of E & O.
I do not want to fight with you. I do think when having a chat about Notary areas, we forget we may all be Notaries, but each state has it own rules for Noataries.
I have not been able to get E & O insurance for Notary thru my State Farm agent. He claims State Farm does not issue it even for thier agents.

Reply by MW/VA on 8/28/12 12:19pm
Msg #432245

I can't get my mind wrapped around them requiring that

amt. & I wouldn't even consider it. IMO it should only apply for TPL's, not ss work. We are always working under a tc anyway.

Reply by MW/VA on 8/28/12 12:22pm
Msg #432246

NNA used to recommend $100K, and then many cos.

required that amt. based on NNA's criteria.
IMO $500K is really excessive for what we do, unless they also want to pay us about $500 per signing. ;-) LOL
They're the only one's that ask for it, so why anyone would yield to their demands is beyond my comprehension.

Reply by NotaryGirl71 on 8/28/12 12:35pm
Msg #432250

My Insurance Guy Rocks

I am in California and don't know what my agent's state limits are, but go to:

Brian Stenhouse @ Micheleti Insurance
(408) 516-2905

I have $1,000,000 (1 Millionh E&O) with him

at least give him a call and if he can't help you, he may know who will.

Reply by MW/VA on 8/28/12 12:55pm
Msg #432256

Curious....what do you pay for $1M E&O? n/m

Reply by Linda_H/FL on 8/28/12 12:58pm
Msg #432258

I'm more curious as to why carry $1M??

Unless it's to cover far more than notary work - maybe other businesses. That just sounds excessive for notary E&O.

Reply by VT_Syrup on 8/28/12 7:45pm
Msg #432319

Re: I'm more curious as to why carry $1M??

From what I've read in the news, in most of the scams where a fake buyer gets a real mortgage from a real bank, the notary is in on it, and I couldn't care less what happens to notaries who are in on it. But if an innocent notary were duped into notarizing a fake buyer in one of these schemes, the bank would be out the amount of the mortgage, and would be looking for someone to get their money from. The bank might allege the notary was negligent in checking the ID of the fake buyer. That might or might not be the case, but the legal fees could be considerable. If the notary only had $10k of E & O coverage, could the insurance company just fork over $10k and leave the notary to defend himself against the rest of the claim?

Reply by SharonMN on 8/29/12 10:49am
Msg #432367

Re: I'm more curious as to why carry $1M??

I can see carrying that amount, as long as it is general business insurance and not limited to notary. Personally, I don't carry that much, but if I did, I would feel comfortable signing the contracts I currently refuse that ask that I indemnify the title company for any errors on my part. Currently my policy is that my liability is limited to waiver of my fee. I'll fix an error, sure, but I'm not getting pulled into a lawsuit where I have to pay the title company's attorney fees over a $100 assignment.

Reply by NotaryGirl71 on 8/28/12 1:31pm
Msg #432268

$750 yr... n/m

Reply by NotaryGirl71 on 8/28/12 1:41pm
Msg #432270

as to why $1,00,000 - CYA or actually CMA. n/m

Reply by sigtogo/OR on 8/28/12 1:47pm
Msg #432271

Notary Girl-is it notary e&o? or general e&o? n/m

Reply by NotaryGirl71 on 8/28/12 1:55pm
Msg #432273

Notary n/m

Reply by NJDiva on 8/28/12 2:28pm
Msg #432280

I have a million dollar umbrella on my HOUSE (which is worth

about half that or less...lol...and wonder WTH would you need that amount for an individual notary for? Sounds excessive and like you may be being taken for a ride my dear Notarygirl. If you were a business, that would be one thing, but as a personal notary? Unless you're knowingly committing fraud, then I wish you would educate me on what the necessity is. Is that what your insurance agent suggested? Maybe you should consult an attorney...lol

Reply by Pro Mobile Notary on 8/28/12 10:31pm
Msg #432332

Re: NNA used to recommend $100K, and then many cos.

They are not the only ones asking for it.

I suspect that within a year or two every lender, every title company and every escrow company will require that level of coverage. Why? Because the TC wants someone else to be on the hook for the liability if something goes wrong.

Reply by Lee/AR on 8/28/12 10:49pm
Msg #432334

Reality of E&O is not necessarily what you think it is

IMO, all they are looking for is 'another deep pocket'. IF it's cheaper for the E&O carrier to pay a claim than fight it, they'll pay it. No consideration is given to the right/wrong of a situation. Just 'how much'. And you, the Notary, have no say in what the carrier decides to do. So, it seems clear to me that all they want is for someone else to share the expense of an error--not necessarily your error.