Posted by anotaryinva on 5/2/13 7:54pm
Msg #468430

Insurance ?

I carry e&o from notaryrotary, I have been asked by a SS to carry general commercial liability too, $100k. Anyone else carry this? Are we covered in any way when we work for a SS vs a TC? I think I remember a certain SS saying that we were covered under his PRO umbrella policy for Provident loans, is this true?

Reply by Barb25 on 5/2/13 8:02pm
Msg #468432

What is it for? What does commercial liability cover? Like if you stick the borrower with a pen and they get blood poisoning. I don't understand?

Reply by Marian_in_CA on 5/2/13 8:13pm
Msg #468437

What does it cover???

Each situation is different... but maybe this can help:

http://businessinsure.about.com/od/insuringyourbusiness/a/homebusins.htm

E&O is only part of it. We should all have commercial auto insurance, too. Don't think so? Ask my pal Rita who got stuck with a massive bill that shut her down as a mobile notary when she was in an accident and her insurance carrier denied the claim because she was working and failed to tell her carrier that she used her car for business purposes.

It's these little things that matter... and YES they are costly. It's part of running a BUSINESS and a reason why taking lower fees simply can't pay the bills.

How many notaries taking $60-$90 jobs have business liability insurance as a commercial auto policy? I'm guessing not too many.

Reply by CarolF/NC on 5/2/13 8:22pm
Msg #468440

FYI Whether you are covered under your standard auto policy

while doing business varies state to state

Reply by Marian_in_CA on 5/2/13 8:29pm
Msg #468444

Re: FYI Whether you are covered under your standard auto policy

Right... that's a general thing. Each state's law is different, but for the most part... if you're running a business with a personal auto policy...your insurance company isn't going to be thrilled if they find out. You have to be sure that business use is not an listed exclusion. I've pointed this out to several notaries over the years who discovered that is *WAS* an exclusion their policy and they didn't even know it.

In fact, in many cases, *some* types of business use are allowed, but others are not. Driving to individual clients' homes and dropping off documents, generally, is NOT. And even then, there's no automatic guarnatee that they will accept the risk of your use.

That's why a commercial policy is usually a pretty good idea.

Reply by Luckydog on 5/3/13 5:45am
Msg #468521

Re: FYI Whether you are covered under your standard auto policy

You only need "commercial" auto insurance if you run your business from you vehicle. I use my vehicle to and from my work, just as driving to a job at Walmart. I conduct business from someones elses house, not mine. I also do not have a business name, just an independent contractor, filing my taxes under my name and SS, not a business. Many factors to consider before paying double on your car insurance.

Reply by Marian_in_CA on 5/2/13 8:04pm
Msg #468434

Any independent business owner should carry general business insurance. It's just common sense. E&O should only be a small part of a larger coverage package/plan.

Never assume you're covered under somebody else's plan. You may be... but there are no guarantees. What if you end up working for signing service that didn't pay their premium?

Reply by CarolF/NC on 5/2/13 8:08pm
Msg #468436

Barb, Covers you for all negligent acts not just the

notarizations, kind of like, that signing agent insurance that they don't sell in some states, and I suppose the pen stick would be covered too LMBO. I got two quotes over $1,000 per year for 100,000 so I hope that SS is paying very well and guaranteeing lots of work. I'd be curious to know who carries 100,000 and with whom and the rates.

Reply by anotaryinva on 5/2/13 8:16pm
Msg #468439

Re: Barb, Covers you for all negligent acts not just the

Apparently if covers all sorts of wired stuff, like if you forget to drop docs. I just got an email from the SS that they are only looking for E&O and that their vendor agreement was wrong.

Reply by Barb25 on 5/2/13 8:24pm
Msg #468443

Re: Barb, Covers you for all negligent acts not just the

Interesting. How expensive is this? I ask because I just had an experience in FL where my homeowners was dropped considerably and my agent said maybe you should consider Flood Insurance. After all Flood does not just constitute water damage from living by the water. Okay fair enough.. Let's look into it.... Well it would be about 50% of my homeowners.I would have to be hit by a tidal wave... The point.... Let's hope I will not forget to drop the docsand other stuff like that. At what point do we need to assess how much insurance is enough in comparison to what we can afford..

Reply by Marian_in_CA on 5/2/13 8:23pm
Msg #468441

Re: Barb, Covers you for all negligent acts not just the

Here's some things to consider... some of these sound funny, but I can see any of these things happening. I know we've all heard crazier:

-What about a paper-cut on a journal that gets infected and the borrower has an impaired immune system?
-How about an allergic reaction to the stamp pad when giving a fingerprint?
-What if you knock over a borrower's mailbox in the dark with your car?
-What is your vehicle is vandalized and loan documents are stolen?
-What if the advertising magnet on your car flies off and hits' somebody's windshield, causing an accident?
-What if you refuse to complete a signing for some reason and the signing service sues you for breach of contract...E&O and your bond isn't going to cover you for that.
-What if a deranged company decides to sue you for copyright or trademark infringement and youu need to either defend yourself or create a new business identity? (DOn't think this doesn't happen... I know a woman personally, in another filed, who was sued for trademark infringement over the use of the word "Fifty" in her business name. Had the case gone to Federal court, she would have won... but she's a small business owner and had already spent 5 figures going the rounds with this guy. IN the end, she gave up and changed her business name earlier this year. It was completely unfair and messed up...but she couldn't AFFORD to fight it any more.

That's just a few things. Remember, anyone can sue you. Whether or not they can prevail is another thing, but you may need legal counsel.

Reply by Notarysigner on 5/2/13 8:35pm
Msg #468445

Marian you forgot ...Or you can represent yourself! n/m

Reply by Marian_in_CA on 5/2/13 8:46pm
Msg #468446

Hehehehe.... Yeah, that often turns out well. n/m

Reply by Barb25 on 5/2/13 8:56pm
Msg #468447

Re: Barb, Covers you for all negligent acts not just the

Well I guess this could be some valid points but I could very well hit the mailbox of my neighbor pulling out of my driveway tomorrow. My car insurance wiill deal with it or not... But if I think of all of the what ifs I may never leave the house at all. I guess the point what are the real risks versus what I am willing to pay for insuring against them.... Again a decision each must make....

If the docs are stolen it could be a long drawn out thing. But in my opinion. I am out a signing fee. And I may have to do it again. I have probably or may have lost a customer. Police Report definitely for good faith. What else. What are they suing for.... In theory and In fact ... two diiffernt things.

Any how, now I understand what the insurance is and thanks for the explanation.

Reply by Donna McDaniel on 5/3/13 7:57am
Msg #468528

Re: Barb, Covers you for all negligent acts not just the

I agree Barb, it's cheaper to buy them a new mailbox.

Reply by Bear900/CA on 5/3/13 12:17am
Msg #468503

And, on the mortgage front...

Insurance Coverage for CFPB Investigations and Enforcement Actions

This is a good article about E&O and D&O (Directors and Officers) insurance for protection against audits and fines from the CFPB and other government agencies.

It just gets tougher by the day no matter how you slice it.

http://www.klgates.com/insurance-coverage-for-cfpb-investigations-and-enforcement-actions-04-25-2013/