Posted by Laurie Lind on 11/3/06 11:47am
Msg #157062

Errors & Omissions

I was suppose to do a signing today. Just before e-docs were to be sent, signing co. asks how much was my errors & omissions. $25,000 is what I have. They said they wanted me to have $500,000. Is that normal? Thought maybe it was a typo. Anyway they told me they couldn't use me. Does anyone have that high amount? I'm fairly new to the signing business and this has me stumped. It's Attorney's Title Services out of CO. (National 1 Source)Lender was Provident Funding. Oh well.

Reply by Linda_H/FL on 11/3/06 11:55am
Msg #157063

Re: Errors & Omissions...do a search on this

I believe others have had E&O issues with Provident Funding..

Reply by Kevin/Ct on 11/3/06 11:58am
Msg #157065

I carry $1,000,000.00 of coverage

Reply by Linda_H/FL on 11/3/06 12:01pm
Msg #157066

Re: Kevin - would an ordinary SA carry that much?

That sounds like an awful lot of coverage..

Reply by Pamela on 11/3/06 1:11pm
Msg #157087

Linda,

To protect themselves in a major lawsuit, many notaries choose to
cover themselves to the maximum.

Remember, E & O covers a notary's actions (not a signing agent's work).

For example, Loan documents are to be notarized for a Joe A. Smooze living
in Boston. Mr. Smooze shows you his photo driver's license with Joe A. Smopze.
printed. He explains that it's a typying error. That he hasn't had the chance to
correct it (working three jobs and all). He seems nice. Has a great smile.
Talks well. Very polite. Sounds reasonable. Therefore, you agree to conduct
the signing. The loan funds and everyone is happy.

Several months later, it is discovered that the "real" Joe A. Smooze is living
(and working on an oil rig) in Alaska. Unfortunately, he is a victim of identity theft.
$800,000 in real (and personal) property is stolen and he sues everyone, including you.

For your mistake, the judge awards $350,000 to Mr. Smooze.

Another example, is that, you complete a loan signing and you triple check everything.
You ensure that all the i's are dotted and that only a jet-black ink, medium-ball point,
Classic Parker pen (as per instructions) is used. Again, the loan funds as scheduled.
Because of your diligence, these two mortgage and escrow companies decide to work
with you directly. You complete about 45 successful signings for them. And they pay very
well too!

One day you hear a knock on your door and it is detectives, with a warrant for your arrest!
Turns out that the "borrowers", loan officers, and escrow officers are all part of a big real
estate swindle. Not only do the victims sue you, but you are arrested too (as the police think
that you are a part of this big scam). At trial, you are found to be innocent on all accounts (in
both criminal and civil courts). However, you have $600,000 in legal fees.

Therefore, you may want to increase your insurance.

Pam

Reply by Linda Hubbell on 11/3/06 1:24pm
Msg #157091

Re: Linda,

I have $100K right now - for the next 4 years...that will have to suffice for now.

Reply by Pamela on 11/3/06 1:34pm
Msg #157094

Correction: Laurie Lind

not Linda!

My mistake.

Pam

Reply by Pamela on 11/3/06 1:45pm
Msg #157097

Corrections Cont'd

I'm trying to do too many things as once!

The above post, was a reply addressed to Linda, regarding an issue Laurie Lind
brought up.

Linda, if you want to keep your insurance that's fine. However, Laurie Lind had
mentioned that she had only $25,000.00 in coverage. Which is why I made
the comment about increasing the insurance amount.

Wasn't trying to start an argument. Just reply to a question.

Pamela

Reply by Linda_H/FL on 11/3/06 1:49pm
Msg #157099

Re: Pam - never took it as argumentative...<G> n/m

Reply by Pamela on 11/3/06 2:05pm
Msg #157107

Re: Pam - never took it as argumentative...<G>

No problem!

Trying to talk on the phone, type on the computer,
cook, wash clothes, record t.v. program, just doing way too much!

But, I do need to increase my insurance ($25,000).
It will expire in January. Will check around as for the best companies (and prices).

Pam

Reply by Kevin/Ct on 11/3/06 2:09pm
Msg #157112

Re: Kevin - would an ordinary SA carry that much?

Ours covers all liability for a law firm. I have had some title companies tell me that they have clients that do require that much coverage. As to what the average SA needs depends upon his assessment of his own risk.

Reply by LCS_CA on 11/3/06 12:34pm
Msg #157079

Kevin, is this E&O coverage or is it called something else? I am just curious as I have been inquiring about this with local insurance agents and have not had satisfactory results. Did you obtain your policy through an independent agent? Thanks!

Reply by Kevin/Ct on 11/3/06 2:12pm
Msg #157113

We obtained it through an agency in Boston

Reply by Mike Photon on 11/3/06 1:10pm
Msg #157085

I have 25K E&O too and I'm thinking of moving up to 100K when my current one expires.
NotRot has it for $468 but that says "Offers vital protection from lawsuits for the entire term of your commission." The trouble with this is that I got my commission 2 years ago. so this will be for 2 the remaining years only?
I found another offer for 170 for 4 years but they will sell it only if you buy the bond from them for $38. Too bad I got my 4 yr bond from NNA 2 years ago!
hmmmph! Looks like I have to keep extending my NNA E&O for two more years - sigh!

Reply by cassiewi on 11/3/06 1:27pm
Msg #157092

I think, if I remember correctly, there was a post about prorating E & O if you were in the middle of your commission. Maybe you could shoot an email to Harry clarifying it for you. I tried to find the post, but I didn't find it.

Reply by LauriecPA on 11/3/06 1:13pm
Msg #157089

I did a closing where that co. was the lender last Friday. Like you, I only have $25,000 E&O. There was a form for the "closer" to fill out stating that they have $500,000 E&O. (No one had mentioned anything to me about it before hand, I printed that doc along with the package. ) I put a sticky note on the form saying I did not meet those requirements, the docs went back to the title co.
I, too was surprised to see how much E&O ins. they wanted the closer to have. I wonder how much that costs a year???

Reply by Laurie Lind on 11/3/06 2:13pm
Msg #157114

NNA only has it up to $100,000 on their website. Are there alot of notaries that have over $100,000? Makes me think I should up it. Can I buy another policy to add on to the one I already have?