Posted by Marsha Ostrer on 3/11/10 3:15pm
Msg #326626

Errors and Omissions Insurance

I am new to this. Several companies I have contacted about work have said I have to have E&O insurance before they will use me. I had planned to wait to see how many I am actually getting before springing for it. I live in MA. Here are my questions:

1. What is the basic amount I can get that will satisfy the companies that require me to have it?
2. What are some guidelines about costs?
3. What companies do you recommend?

Thank you in advance.

Marsha

Reply by Sylvia_FL on 3/11/10 3:17pm
Msg #326628

Companies need to realize that the E&O insurance does nothing to protect them. It is for the notaries protection. The notary bond is what protects the public.

Reply by cawest/PA on 3/11/10 3:17pm
Msg #326629

It varies by States ad click on the orange button and do a search.

Reply by cawest/PA on 3/11/10 4:30pm
Msg #326651

and do not let NNA comvince you they are the best! n/m

Reply by Moneyman/TX on 3/11/10 3:25pm
Msg #326636

Try "Notary Supplies" tab above. As for me, NotRot has had the best price on E&O insurance. Mainly because they offer the opportunity to purchase it in 1 year increments.

E& O insurance is a good product to have even as a general notary. For the protection it offers, the cost is inexpensive (IMO). Anyone can make mistakes (errors), especially people new to the business.


I am not an attorney, nor is this meant to be legal advice, bla, bla, bla...

Reply by Roger_OH on 3/11/10 3:59pm
Msg #326641

Yep, get it right here on NotRot! n/m

Reply by jba/fl on 3/11/10 4:18pm
Msg #326646

Since one of your concerns is that you don't know how much business you may be getting and the market is very slow right now, Moneyman's advice of getting here because you can buy a 1 year policy (everyone else appears to be in conjunction with your commission expiration date), that does ameliorate the cost for you.

As for the amount you need? Some companies will accept $25,000, others want more. IF you ask those that ask you, they will give you a figure and you can decide from there. Also, search here using the Orange Search button for previous discussions for who, what, when, where, why and how this pertains to your situation. There are several schools of thought regarding this insurance.

Reply by Linda_H/FL on 3/11/10 5:34pm
Msg #326667

Isn't MA an attorney-restricted state?

You need to be supervised by an attorney to do signings there? Not exactly sure how it's worded there but it's my belief there's some regulation in MA prohibiting notaries from doing loan signings solo. On the other hand, if you're an attorney, mea culpa..

I could be wrong (no surprise there)..as for the E&O, in addition to what's already been said, I'd check the fees here and the amount is something only you can determine. It covers *notarial errors* only and covers nothing to do with loan signing errors unless you get a Signing Agent E&O or a professional liability policy (mucho $$$)...

Reply by Sylvia_FL on 3/11/10 5:39pm
Msg #326671

Marsha is an attorney:) n/m

Reply by Linda_H/FL on 3/11/10 5:57pm
Msg #326679

Heh..that's why I added my little disclaimer..

but for my own knowledge, is MA still attorney-restricted?

Reply by Sylvia_FL on 3/11/10 6:37pm
Msg #326707

Re: Heh..that's why I added my little disclaimer..

Yes I believe it is still attorney restricted

Reply by PAW on 3/12/10 6:54am
Msg #326797

Restricted, but does not eliminate solo NSA signings

The Executive Order specifies that the closer must be supervised and employed by an attorney. It doesn't go as far as GA and SC in that the attorney must facilitate and preside over the closing, so NSA's who can affiliate themselves with an attorney such that all correspondence and billing happens through the attorney or the firm, and the NSA is paid by the attorney or firm, can perform and/or preside over the closing.

Reply by Maureen_nh on 3/11/10 6:06pm
Msg #326684

Re: Marsha is an attorney:)

Marsha, since you are an attorney I would go for as much as you can afford, since you are no doubt going to be held to a higher degree of accountability.
Does your professional insurance cover you at all for this?

Reply by Cari on 3/11/10 6:26pm
Msg #326699

Maureen, I was just thinking the same thing?! n/m

Reply by BobbiCT on 3/12/10 9:55am
Msg #326848

Proof of Insurance from ...

The attorneys that I work with provide proof of attorney Professional Liability Coverage. Because they are an "attorney," they need a higher coverage and different type of insurance than a notary public; i.e., the companies are more interested in deep-pocket attorney coverage for errors.

Check your policy: most will include coverage if the attorney simultaneously acts as a notary public. If not, provide both your Professional Coverage (as an attorney) and a notary public E&O policy, which shouldn't be nearly as much coverage since this is only covering the "notarization block," not your real estate closing services.