Posted by Joy223/MI on 10/2/06 6:45pm
Msg #149872

How much E & O Coverage is enough?

I currently have $25,000 in E & O Coverage. I have seen where some have as much as $100,000 and others have less then I do. How does everyone figure out how much is enough?
Thanks ahead of time to all of you for your feedback.

Reply by Linda_H/FL on 10/2/06 7:08pm
Msg #149879

I currently carry $25,000 also - my starting insurance - but I'm thinking that if calls and business continue as they have I might increase my coverage -

I would assume that if one gets sued and their policy is exhausted the claimant might have recourse against one's personal assets to make them whole - (course you know what happens when you assume) - $100,000 would go farther to head off financial ruin and loss of your one's home than $25,000 would.

Think I just talked myself into it..

Reply by Charles_Ca on 10/2/06 7:35pm
Msg #149881

Re: How much E & O Coverage is enough? Right Linda -

one has to assess the risk and how much can you afford to loose. Insurance is one of those thinkgs that it does no good until you need it. But when you need its priceless

Reply by Julie/MI on 10/2/06 7:45pm
Msg #149882

In Michigan, notarial error does not invalidate a document.

Someone show me a table of the notarial E & O claims in the United States state by state. And what the payouts were/are.

And, this may may you gag, but I don't make mistakes.

My mom and pop company that provides my bond has $8,000 of E & O for free that runs the course of the commission.

If one of my best clients requires higher e & o, I will comply.

Reply by Julie/MI on 10/2/06 7:47pm
Msg #149883

Eating crow, should have said may make you gag......hahahahahahahahahahahaha!

Additionally, I took my name of the house and the other accts are in a trust, so I am worthless in the dollar sense.

Reply by Charles_Ca on 10/2/06 8:08pm
Msg #149886

Re: How much E & O Coverage is enough? In California it

is very common that when there is a lawsuit in a real estate transaction the plaintiff names everyone involved for the total amount of the percveived damages. It may have nothing to do with actual value. As you say however you may be suitproof, plaintiffs here generally like very deep pockets. So, if you have nothing to loose you have nothing to worry about.

Reply by Lee/AR on 10/2/06 8:10pm
Msg #149887

I have what is required by my state...$5,000. When I am re-commissioned in 2011, it will rise to $7,500. Seems like last year's big tempest in a teapot was 'gotta have $100,000 E & O"...many ran out & got it; wasn't ever required. Year before or maybe it was 2 years ago, 'gotta have Enjoa'. Nope on that, too.
Guess you have to do what makes you comfortable. Just don't do it because somebody says you 'gotta do this or else'.

Reply by Poppy on 10/2/06 8:44pm
Msg #149889

Another thing to remember is that E & O covers the notarial

act. If you are being sued for giving advice during the loan signing or another aspect of the signing agent hat your out of luck.

Reply by Joan Bergstrom on 10/3/06 1:46am
Msg #149911

I have $100,000 policy and its just a confort level for me. I don't think I have ever gotten a signing because of this coverage.

Reply by Linda_H/FL on 10/2/06 9:31pm
Msg #149900

Re: How much E & O Coverage is enough?...I'd like to think

that if something went wrong with the transaction that exceeded my $25,000 limits then the liability goes deeper than me and goes more toward the source of the loan, the TC, the broker. the realtor...etc.

Reply by BetsyMI on 10/3/06 2:24pm
Msg #149989

Re: How much E & O Coverage is enough

I got $100,000 E&O recently, up from $25K because a Title Company said that was one of the reasons they weren't using me. So I upped the E&O and they still never use me!

I should bill them the extra premium I paid!