Posted by kathy/ca on 8/18/05 2:42pm
Msg #59944

Insurance, amt of E & O you all carry? Is it better to......

increase that amt and/or also take out a blanket liability policy? Any insurance agents out there?

Reply by kathy/ca on 8/18/05 3:15pm
Msg #59952

Both my bus. ins. agent and my E & O ins. co. said they see

no reason for having any other type liability insurance other than E & O ins. for what we do in signing loan docs. Any thoughts on this?

Reply by WF-CA on 8/18/05 4:14pm
Msg #59985

Re: Both my bus. ins. agent and my E & O ins. co. said they see

Hi Kathy: I am an insurance agent (for 29 years) for commercial types of insurance (aka business insurance). I see no reason for you to purchase anything other than E&O insurance, since that is where your largest exposure is. If you work out of your home, you may want to consider adding an endorsement to your homeowners (or renters) policy that adds coverage for business liability (it would strictly exclude e&o losses). Some insurance companies will also write 'home business office' policies for a very small annual premium.
Wendy

Reply by kathy/ca on 8/18/05 6:43pm
Msg #60034

Thank you Wendy, this is the kind of info I have been look..

ing for. On another board someone posted that a business liabililty policy is also a good thing to have but as I have stated, both my insurance carrier and my E & O insurance carrier, seems to think there is no need for the extra liability insurance. They also said that E & O insurance would cover any errors or omissions that the notary made and other than that, what is the notary responible for, certainly not the "content" of the docs.

Reply by PAW_Fl on 8/18/05 10:18pm
Msg #60080

Re: Thank you Wendy, this is the kind of info I have been lo

Do you think your Notary E&O Insurance would cover a loss if you forgot to ship the docs back? I don't think so, since it is not a notary function. It is a Signing Agent's responsibility. The SA part of the job, imo, has a lot of exposure to UPL and errors that may cause the borrowers some loss. The borrowers can seek recovery from the SA. Your Notary E&O Insurance won't help you in those situations unless the error was due to a notarial error.

Another major concern that I have is the identity statements where you, the Signing Agent, state that the information is correct and accurate in the identification of the signer. This document is not notarized, so your notary commission, bond and insurance are not in the picture. The loan is funded and the 'borrowers' head south. You can bet your bottom dollar that the signing agent is going to be named in the action to seek recovery. The insurance company that has the policy for the Notary E&O Insurance will make sure it's not a notarial act that caused the problem, so they'd be off the hook. And you, the individual SA would be standing alone to absorb the full brunt of the impending action.

Reply by TitleGalCA on 8/18/05 10:27pm
Msg #60084

Re: business liability insurance - PAW

PAW, are you saying then that as signing agents we SHOULD carry business liability insurance outside of our E&O or are you pointing out that we're not protected at all should we be party to a lawsuit.

I don't 'forget' to ship docs back but your post makes me think I should pay another visit to my insurance guy.

Reply by PAW_Fl on 8/18/05 10:43pm
Msg #60092

Re: business liability insurance - PAW

I'm saying that in my opinion, that as signing agents we have quite a bit of exposure and are not protected by the notary E&O. Should we carry business liability insurance? I can't answer that. But maybe a return visit with your "insurance guy" may just be in order.

At one time I looked into some general business liability insurance, but don't remember why I didn't pursue it further. Since the Signing Agent isn't a recognize industry, like carpenters, loan officers, firemen, etc., it's really hard for some insurance agents to get a grip on what is needed and why.

Reply by TitleGalCA on 8/18/05 10:48pm
Msg #60098

Re: business insurance - PAW - got it, thanks! ~ n/m

Reply by PAW_Fl on 8/18/05 10:50pm
Msg #60101

Re: business liability insurance - PAW

I don't forget to ship docs either. But there just may be one of those times when all hell breaks loose and things just don't work out right. The envelope slides under the seat, or falls out of the car accidently when you open the door at the quik-mart on the way to the drop box. You don't know it. Then your mind is directed on to more pressing (at the moment anyway) matters. By the time you regain sanity and your nerves have settled down (and possibly recovered from a hangover ), you remember the docs. OMG, WHERE ARE THE DOCS?

It hasn't happened to me ... yet. I've come close and thankfully the non-delivery was on Friday so I could still make a special run to get the docs off on Saturday and still get to the title company on Monday.

Reply by kathy/ca on 8/19/05 1:12am
Msg #60136

Paul, you make some very good points which bring cause for..

concern. I wonder what the answer is. I also wonder what the % of loan signings have ever had something like this happen. Seems even if we always do our job correctly we may be setting ourlselves up for disaster. Makes me wonder if this is all worth it, as much as I enjoy doing it.

Reply by kathy on 8/18/05 6:53pm
Msg #60036

Wendy, typically what do these added endorements cover if...

added to a homeowners policy? You have been very helpful and I thank you. Kathy

Reply by Lee/AR on 8/18/05 4:55pm
Msg #60013

My opinion only--carrying a large amount of E&O simply makes you the #1 target when anything goes south. E&O doesn't care whether you were right or wrong--just 'how cheap can we get off on this one'. So... may as well paint a big red circle on your back & hand 'em the gun. I would LOVE to hear many stories about how I am wrong and that your E&O carrier hired 6 lawyers to defend you and it didn't cost you a thin dime. Start posting...