requirement came from XYZ (who sell insurance, of course). Always remember that you're insuring you, not your hiring party. It's there to cover legal costs if you're sued for some infraction. I agree that most of us haven't heard of claims filed, but we wouldn't necessarily be notified. I had dropped back to 50K when the business slowed, but have one co. that does require $100K. I know it's because these cos. buy into XYZ as the "authority" in the industry. Those cos. that require $500K don't understand our role either. That's the minimum required for title companies. Their liability issue in the transactions is a lot higher than ours. Apparently, Provident Loans is the one that requires that. If you're working under a signing service, you should be covered by their insurance. I would never bear the cost of carrying $500K E&O Insurance. I did have a Business Liability policy for a few years that was for $500K/$1M. I dropped that also when business slowed & I needed to cut back on expenses. I hope this explanation helps you see things more clearly. Only pay for as much E&O insurance as you think YOU need. |