Posted by Brasring_Ca on 5/4/09 2:17pm
Msg #287220

E & O policy

I am looking for the best price on 500,000 E & O policy anyone else have already and can recommend? TIA Jenifer

Reply by Jim/AL on 5/4/09 4:46pm
Msg #287229

Good luck finding $500K E & O policy, hard to find. n/m

Reply by Associates Title Group on 5/4/09 4:51pm
Msg #287230

I have E/O insurance from St. Paul Travelers for $500,000. However, I own a title company as well. My premium is $2800 per year. If you only need it to do contract closings, does a notary bond cover you? I never understood why we need coverage for contract closings since we never handle the money. What can happen? We don't check ID? We forget to get something signed. Those errors are caught before disbursement.

Reply by Lee/AR on 5/4/09 5:14pm
Msg #287233

imho, they are just looking for some deep pockets thru which to spread the blame as it's often cheaper for E&O to pay a portion of the whole claim than fight it in court.

Reply by Associates Title Group on 5/4/09 5:21pm
Msg #287234

I am sure you are right. But, unless the problem is related to the actual signing, it is unlikely the policy will pay out. It may make them feel better to have a copy of it though.

Reply by Lee/AR on 5/4/09 5:29pm
Msg #287235

$2800/year out of my pocket so they can feel good? Let me think...ummm, I don't think soooo.

Reply by Associates Title Group on 5/4/09 5:30pm
Msg #287236

I know, it's crazy and that doesn't even cover the bonds (an add'l $1100)

Reply by MW/VA on 5/4/09 8:52pm
Msg #287265

Try a search using the orange search button. This has been discussed before.
I would never, never carry $500K. I carry $100K and that seems to be the top amount required in this business.

Reply by dickb/wi on 5/4/09 9:58pm
Msg #287274

do you carry $100,000 Notary E&O Insurance or 100k signing agent e&o..

there is a huge difference.......notary e&o only covers notarizing errors or omisions......signing agent e & o only covers errors and omissions in the course of your acting as a signing agent not as a notary.....

Reply by Linda_H/FL on 5/5/09 8:02am
Msg #287286

I have one problem with the idea of Signing Agent E&O

I guarantee my work - if I make a mistake (miss doc, miss initials, etc) I go back out on my own dime and time.....if I had Signing Agent E&O in place, what's to stop any company from placing a claim against that E&O as opposed to taking advantage of my guaranty and just sending me back out, thereby hurting me in the long run (higher premiums, higher deductibles, dropped coverage, etc)...

Deep pockets premise, I suppose, and I'm not so sure SA E&O is the best thing since pb&j or sliced bread. Just curious and JMHO

Reply by Les_CO on 5/5/09 12:48pm
Msg #287305

Re: I have one problem with the idea of Signing Agent E&O

Scenario:
Let’s suppose the buyer/borrower has a heck of a deal on their dream house…and they got it at $200.000 under the asked price because of a distressed situation…the Realtor has three back-up contracts, all for more money..but because the seller signed the first offer with the buyer/borrower they are committed…for a time. Now you as a ‘Signing Agent” meet with the buyer/borrower and get all the docs signed…just in the nick-of-time, as the borrowers lock runs out in 3 days. You do the signing/closing perfectly… as instructed…no mistakes. But its Thursday afternoon, and you have to pick up the kids at school and the UPS drop is seven miles in rush hour traffic the opposite way…you pick up the kids…think I’m too late to make the pick-up..I’ll drop the package tomorrow. Friday (EOM) you wake to the phone ringing…Lots of emergency, last minute calls…some form good customers…you take one, print the docs you can and rush out the door, do the signing, get a call that your (kid/husband/whatever) had an accident and is in the ICU unit at the Hospital across town, you drop the signing you just did (FedEx) and spend the next three days at the hospital/Holiday Inn across the street. Mean time the “ Original Thursday” signing package, still in the back of your car, has gone south…the seller is out of their original contract, and taken the back-up (for $117,000 more).”Your” buyer/borrower sues everybody..for the loss/time, effort/etc. Your E&O will probably cover …nothing…You as a Notary did your job perfectly…you as a signing agent..forgot to ship the package..thus causing the buyer/borrower a reason to sue.

Reply by Lee/AR on 5/5/09 5:18pm
Msg #287342

Awful lot of 'what ifs'. Adding one:

What if FedEx lost it? Do they get sued, too? Or is that also the notary's fault?

Reply by Les_CO on 5/6/09 9:44am
Msg #287424

Re: Awful lot of 'what ifs'. Adding one:

Yes a lot of what ifs. I was just trying to point out a situation in which I believe a Notary’s E&O policy would be worthless. I can think of many. The most common I’d guess, is where on a Provident loan the “Signing Agent” doesn’t follow the instructions EXACTLY, and the borrower doesn’t sign, or date a non-notarized document the way they (Provident) like, and they kick it back and charge a $300 re-draw fee. They have been known to ask the signing agent to not only do the re-sign for free, but to pay the re-draw fee.
If FedEx loses the package?….. I would think that the Notary/Signing Agent/Closer would get sued first…If they could prove that FedEx lost the docs I think they’d be off the hook. I like to take my packages to Kinko’s and get a receipt, at least I can prove I sent “something” to the Title Company