Posted by Victoria Woodhead on 7/7/06 10:07am
Msg #131441

E & O insurance

What should be the minimum amount of insurance we carry?

Reply by Victoria Woodhead on 7/7/06 10:26am
Msg #131447

I did use the orange button and found out some info that is helpful. But I am wondering how important it is to up my insurance to 100,000? It seems most have around 25,000 but many carry more.

Reply by Becca_FL on 7/7/06 10:33am
Msg #131450

I think you need to ask yourself "how much can I afford to lose?" Only you can answer the question.

Reply by SarahBeth_CA on 7/7/06 10:49am
Msg #131460

Becca, and all

That's a good question. In fact I'll be asking myself that when I get my Tx commission. I'd like to know how many of us carry enough to cover a large loss. What is a large loss? Like the loss of our homes. If any of you don't mind I'd like to take a poll on this.

1)Do you carry more than your states minimum?
2)Do you carry over 25,000?
3)Do you carry over 50,000?
4)Do you carry enough to cover the equivelent of the loss of your home?

If I remember correctly there are a few ss that require 100,000 in e & o. Oh and what is the state minimum for those who are required to carry a tpl?

Reply by MelissaM_FL on 7/7/06 11:53am
Msg #131488

E&O Insurance Amounts

We carry $100,000 on each of the partners in our corporation, plus we ask notaries who work for us locally to carry the same amount. I believe it is $60 per year.

Reply by Kevin/Ct on 7/7/06 10:34am
Msg #131451

Our firm carries $1,000,000.00 of coverage. If you are caught on more than one claim, you are going to want as much coverage as possible. Otherwise you are liable for the amount of the claim in excess of the policy limits.

Reply by Victoria Woodhead on 7/7/06 10:44am
Msg #131457

Thank you. I guess I knew this just needed confirmation.

Reply by NCLisa on 7/7/06 10:47am
Msg #131459

Have you or anyone you know ever had a claim?

I can say that in 16 years, I have never known anyone with a Notary E&O Insurance claim against them. Do you know of any claims, if so what exactly were they for?

Reply by SarahBeth_CA on 7/7/06 10:52am
Msg #131463

Re: Have you or anyone you know ever had a claim?

Great question Lisa. It is something to consider when purchasing a policy. We need to weigh what we aren't willing to loose against how many claims are actually made. Also if y'all remember the "I made a mistake" thread, is that something that could possibly end up an e&0 claim?

Reply by Kevin/Ct on 7/7/06 10:56am
Msg #131464

Re: Have you or anyone you know ever had a claim?

What you are failing to consider is that clients feel more at ease with your services if they feel adequately covered for problems. We have had a number of clients seek out our services based on the amount of insurance we carry. Sometimes this is imposed upon them by their clients.

Reply by SarahBeth_CA on 7/7/06 10:58am
Msg #131467

Re: Have you or anyone you know ever had a claim?

Was that directed to me Kevin? If so, no I didn't fail to consider that at all. I already knew that.

Reply by Paul_IL on 7/7/06 11:24am
Msg #131479

Question for you Kevin

Kevin,
Which is more likely to be sued for, a notary error or an error in the other 90% of the package that has nothing to do with being a notary?

How many claims get made on Notary E&O Insurance a year?
Of those claims how many are because the attorney saw E&O and just added them to the lawsuit?

What errors would be are covered under E&O??

In most situations that I have heard of the Notary getting sued it is not covered by E&O as it usually involves some type of willful misconduct or intent.

Reply by Kevin/Ct on 7/7/06 3:25pm
Msg #131555

Re: Question for you Kevin

In terms of suing for damages related to a closing error, the general rule is that the plaintiff casts a wide net to include all the potential defendants. It is entirely possible that the notary was not negligent, but because he was associated with the party that was negligent he may get sucked into the case as a codefendant. His signature may appear on the problematic documents. This is why e&o insurance will help him to sleep at night.

With respect to the number of claims filed each year, I have no idea. With respect to the deep pocket theory of law, there would have to be a reasonable basis to assert the claim even before the defendant's deep pockets could be considered. If the suit is filed without a reasonable basis in Connecticut, both the plaintiff and his attorney could subsequently be sued for vexatious litigation.

Generally speaking e&o insurance covers negligence and not intentional torts. I can't think of many intentional torts for which a notary signing agent could be sued. It is usually for negligence arising from his failure to perform properly. In the course of the litigation the plaintiff in the event of settlement agrees to accept the limits of the e&o insurance policy in full settlement of the claim. One incentive to settle early in the case is that attorney's fees and litigation expenses are usually deducted from the policy proceeds, thereby further reducing the funds available to pay the claim as the litigation progresses further.

Reply by Victoria Woodhead on 7/7/06 11:03am
Msg #131468

Re: Have you or anyone you know ever had a claim?

This is why I am asking. I have talked to a few who have been in this business for years who have never had a claim. When I am marketing myself to companies, having more insurance seems credible and I suppose smart.

Reply by TitleGalCA on 7/7/06 11:33am
Msg #131481

It would be GREAT if we could get more info about E&O claims

why they happen, when they happen, and what the results were to the notary. I suspect the owners here know alot about it because they sell it, and being the good business people they are, would have investigated it. Other than that, I suppose a general insurance company could answer questions?

I think this would be a good topic to address for the Notary Association that is trying to stand up on wobbly legs (Shane....).

Reply by Marlene/USNA on 7/7/06 2:42pm
Msg #131544

Re: It would be GREAT . . .yeah, wouldn't it, tho!

Insurance companies are extremely reluctant to release such information even to their agents. We've been trying to get some examples for over a year. They keep promising, but. . .

We also follow cases we hear about on the news and try to find out if a bond or E&O policy paid out on a notary who made a mistake. The notary - if we can even find out who it is - is usually reticent to tell us what happened, unless they think they were sorely wronged and then we can't get them to stop talking.

Nobody likes to own up to having to pay out, I guess, or to have made a career-ending mistake.