Posted by Laura Hutter on 3/26/07 9:10pm
Msg #182079

e&o insurance

I have been a signing agent for 5 years for a local settlement company, and have only been on notary rotary since the fall. I have had only 2 closings that requested e&o insurance, and only 1 actually required it. I was going to purchase this tomorrow, unless anyone else finds that it is necessary only rarely. Please help. Thanks

Reply by Patricia Casey on 3/26/07 9:36pm
Msg #182083

I'm not sure what the regulations are in your state but in Colorado we are required to have E&O Insurance at least $25,000. When I lived in Nevada didn't need to have E&O but had to have a bond.

The E&O Insurance protects you from lawsuits. If someone thinks you messed up and they decide to sue you for damages (think about the $150,000 - 500,000 mortgages you are dealing with) you could loose everything. The National Notary Association suggests everyone should have at least $100,000. I have the state minimum right now but intend to upgrade as soon as I can afford it.

Reply by DonR_NYC on 3/26/07 11:08pm
Msg #182101

Bear in mind that E & O Insurance ONLY covers notary errors. It DOES NOT cover the other duties of a "signing agent".

Reply by Carolyn Bodley on 3/27/07 12:02pm
Msg #182190

Re: Where did you get your information

that E&O is required in Colorado? If it is from the NNA, it is just more of their MISINFORMATION.

I'm not going to tell you the statute number and will let you do the research yourself, but it says "Nothing in this article shall be construed to deny a notary public the right to obtain a surety bond or insurance on a VOLUNTARY basis to provide coverage for liability."

Reply by Becca_FL on 3/26/07 9:56pm
Msg #182087

You really should have it and it's not that expensive. Consider E&O YOUR insurance policy. In the past, I've paid $14.00 per year for $30,000 worth of coverage. Next month, I will increase my coverage to $100,000 at just around $65 per year. To me, it's worth it.

Reply by Patricia Casey on 3/26/07 10:07pm
Msg #182091

Right, my policy was $21 for $25,000 in coverage. I've seen a few title & signing companies that are requiring you to have $100,000 policy.