Posted by ME/NJ on 6/2/07 12:23am
Msg #193308

NR E&O ins is a little pricey

I have 2 years left on my comission and for 100K its 520 dollars... YIKES whats different vs my NNA policy that would cost me 200 over 2 years?

Reply by Harry [NR] on 6/2/07 12:30am
Msg #193310

A 2-year, $100,000 New Jersey policy is $208. All the policies in our store are priced for full commission terms. The $520 is for 5 years of coverage. You would simply need to call us to order the shorter term.

Harry
Notary Rotary

Reply by ME/NJ on 6/2/07 12:47am
Msg #193315

Thank you for explaining that, maybe you should add that to the product listing. When you see the price structure it may scare some folks off who only have a few years or less left, I was in sticker shock when I saw the pricing before you explained it.

Reply by Harry [NR] on 6/2/07 2:57am
Msg #193323

Thank you for the suggestion. We've been thinking about adding the shorter terms to the store for awhile. We just need to decide on a couple technical details (i.e. how we would want to represent the various coverage limit and term combinations) and then get it done.

Harry

Reply by Joe Ewing on 6/2/07 10:00am
Msg #193344

Sort of like carrying a toy gun

Since E&O does not cover prior acts, to purchase it on a year to year basis is a crapshoot. But since some highly un- informed contractors think Notary E&O Insurance covers the same RISK as title officer E&O they are requireing the Notary to be bound for outrageous amounts of useless insurance coverage before allowing them to carry the paper. Harry you SHOULD offer E&O on a year to year basis just for that reason. You and every other notary knows or should know that that when it applies to NSA duties every Notary E&O Insurance policy is so full of holes you could strain spagetti with it. But we do want the work and requiring the notary to purchase the excessive coverage for years is the wrong way to sell it.

Reply by Harry [NR] on 6/2/07 3:17pm
Msg #193370

Re: Sort of like carrying a toy gun

Joe -

For quite obvious reasons, most insurance policies do not cover prior acts - things you have done PRIOR to starting coverage - although it is possible to purchase that sort of coverage. In your case, I suspect you might be able to purchase a claims-made policy with a retroactive date to the start of your very first notary commission. Of course, that would have to be through a specialty market and I suspect the premium would be upwards of $5,000/year, especially for the "nose" coverage, and would increase each year as the potential number of prior acts build.

In terms of the Notary E&O Insurance policy being "full of holes" as you put it, that's not the case. It covers NOTARIAL ACTS performed as a duly commissioned notary that have not been performed with criminal intent. I'm not sure how much more cut-and-dried it can be. There is not a long list of exclusions (like you would have with the claims-made policy above, which would probably come in at 20 pages, or so) and it doesn't cover claims arising out of ED or any other non-notarial performance issue. It is what it is and it's priced accordingly.

In my last response to one of your messages, I gave you several scenarios where carrying such a policy could pay-off. Quite coincidentally, we received in today's mail a copy of a claim that's currently being made against a California notary bond. In part, it reads:

"My wife and I recently lost an opportunity to buy a house due to malfeasance/misfeasance of a California notary Public."

The claim goes on to explain how an improperly completed notarization on a Power of Attorney resulted in rejection of the purchase agreement by an escrow office due to the "defect of lack of date on the power of attorney." Subsequently, the seller's "new real estate agent" offered a "new sales agreement that was substantially different from what we had previously agreed to in writing."

Now, if the claim is paid on this bond in the full amount, the notary is on the hook for $15,000 to the surety. IF they had E&O coverage (which they did not purchase from us), it would step in to pay both defense costs and damages to the policy limit for this notarial omission. In the absence of E&O, things could get very ugly for this notary.

In terms of offering 1 year policies in our store, yes, I agree that we need to get them in there, especially since NNA has a penchant for selling packages that include a "4-year bond and E&O policy" (where the E&O is for 1 year only). From what we have seen, there are a HUGE number of notaries running around with 1 year policies. Until we decide on our technical approach and set aside the time to build it into our system, the only way to purchase 1-, 2-, 3- and other short-term policies is to call us at the toll-free number listed in our store.

Harry
Notary Rotary

P.S. We sold a 1 year $25,000 Florida E&O policy the other day for $12. Given the fact that these policies include defense costs subject to policy limits and cover scenarios such as the "real world" example I provided above, carrying this type of coverage at about $0.03/day would be hard to argue with. Of course, notary experts who never make mistakes and are not fearful of our litigious society would nonetheless argue, I'm sure.

Reply by Sylvia_FL on 6/2/07 3:38pm
Msg #193372

Re: Sort of like carrying a toy gun

I bought my E&O policy when I renewed my commission (NotRot was not selling E&O at the time). The company I renewed my commission through sold E&O, but only up to $30,000.
The 4 year policy cost me $75, which I thought was reasonable. However I just checked Notrot and $30,000 through NotRot would only cost me $56 for the 4 years. VERY reasonable. had NotRot been selling E&O insurance when I renewed my commission I could have saved myself $19. Actually I would have bought more insurance, as NotRot offers more than a $30,000 policy.

Of course I know E&O is more expensive in other states, but I bet NotRot has the best prices for the other states as well.

Reply by JanetK_CA on 6/2/07 6:29pm
Msg #193381

Re: Sort of like carrying a toy gun

My numbers match yours almost exactly, including costs, if memory serves. I have one year this month left on my current commission (E&O & bond are concurrent) and am about to begin researching what it would cost me to upgrade to $100K from $30K coverage, so I'd also be interested in finding out about a one-year policy. There's probably lots of others in the same boat. (I'll be in touch, Harry!)

Reply by jojo_MN on 6/2/07 2:13am
Msg #193319

Thank you for suggesting that. I almost went with XYZ's E & O until I e-mailed Harry asking if there are one year policies available. I work in three states, so there is no way I could afford to do all three for the entire commissions. Like I posted earlier, NotRot is extremely fast in processing the E & O order. I received mine today and only ordered it two days ago!