Posted by mike/ca on 4/5/05 5:02pm
Msg #29793

e & o insurance in nev (nv sa )

I just found out e & o ins in not required in the state of nev. can any nv sa's possible enlighten me if there are any requirements by ss or title companies??

Reply by Fran-NV on 4/5/05 5:15pm
Msg #29795

It is not required by our state and I do not carry any. Has not affected my business.

Reply by mike/ca on 4/5/05 5:19pm
Msg #29797

thanks was just curious

Reply by Alan65_CA on 4/5/05 6:31pm
Msg #29806

E&O insurance protects you in the event a lawsuit comes back on you due to a mistake you may have made as a notary. A bond only protects the public.

Reply by Fran-NV on 4/5/05 6:49pm
Msg #29812

Yes, correct.

Reply by Fran-NV on 4/5/05 6:51pm
Msg #29814

As a general rule...

What is the recommended E & O amount of coverage?

Reply by Shannon/Va on 4/5/05 6:54pm
Msg #29816

Re: As a general rule...

E&O is not required in alot of states but some client require it. I would never do business without it. Normal amount is $250,000 or most notaries I know. Some can get away with 100,000 but I have never closed a loan under $100,000 so mine is higher. I am also an abstractor so mine is a bit higher because of that.

Reply by nt/ca on 4/5/05 7:44pm
Msg #29834

Correct Me If I'm Wrong

But, I was under the impression that the E&O only covers you on errors made on the actual NOTARIZATION of the document - not on any other elements of a set of loan documents. Ergo, I wouldn't be covered if the screw up I made as an SA was on a portion of the loan documents that wasn't subject to notarization. So, if I don't screw up the notarization itself, but screw-up something else, and that is the cause of the loss for the claimant - E&O insurance wouldn't cover it, no matter how much I carried. Correct?

Reply by Stephen_VA on 4/5/05 7:45pm
Msg #29835

Re: As a general rule...

I have heard other people reference the amount of loans that they work with. I have trouble believing that someone could claim that damages incurred would ever be the total amount of loan. Logic would seem to say that even if a notarial error is made the documents have still been executed. In other words adjustments may need to be made to payoffs and interest caused by the delay but the damages caused by the error would not be the total of loan, it might only be extra interest on a loan that would have been paid off had it not been delayed.

I would absolutely love to see some actual cases where this has been challenged to get a better handle on it, I'm just thinking out loud.

Reply by Shannon/Va on 4/5/05 11:03pm
Msg #29872

loan to e&o coverage amount

Stephen, I personally cover more than I think I need for doing notary work because I am a full time abstractor as well. My business does both searches and closings. THerefore, I need enough to cover any missed items that may be indexed wrong or spelled wrong, etc.

Reply by Cheryl_NV on 4/5/05 7:58pm
Msg #29839

Most of the companies that I get work from require it. Also you would want it to protect yourself.

Reply by mike/ca on 4/5/05 10:07pm
Msg #29855

i carry 25,000 in calif but interesting enough i have never heard of a notary being sued for any type of incorrect notorization in calif. i have heard of a lot of notories doing a quick resign prior to the rtc taking effect.

Reply by Fran- on 4/5/05 10:28pm
Msg #29862

Re: e & o insurance in nev (nv sa )

Reply by Fran-NV on 4/5/05 10:29pm
Msg #29863

Sorry for the last post. I slipped.
Thanks for all the input. Very helpful!

Reply by Cheryl_NV on 4/5/05 11:10pm
Msg #29874

I carry $35,000

Reply by Shannon/Va on 4/5/05 11:17pm
Msg #29875

You carry $35,000 E&O or have a $35,000 bond? I never know you could get that low of an amount of E&O.

Reply by Cheryl_NV on 4/5/05 11:24pm
Msg #29878

$35,000 E & O & $10,000 Bond

Reply by Shannon/Va on 4/6/05 6:13pm
Msg #30009

I tried to get a $10,000 bond, though not required by my state, and was told I had to pay almost $6000 for it, up front. Is that normal