Posted by Benchmark on 6/16/11 3:23pm
Msg #386493

What amount of errors and omissions insurance do you have?

I am in KY and have 50k was wondering of this was enough or too much. Could I have just gotten the minimum to satisfy the title companies? How much do you guys carry?

Reply by SouthernOK on 6/16/11 3:25pm
Msg #386494

NP $100K, SA $250K n/m

Reply by Sha/CA on 6/16/11 7:04pm
Msg #386534

SA 100K

I've never had to use it, but I have been asked to prove it. It's very expensive, and I'm very careful! I haven't read any horror stories from careful notaries who have had to use their E&O. Did you try the orange search button? I'm going there now. Bye.

Reply by Moneyman/TX on 6/16/11 8:11pm
Msg #386540

$35K :=D Get mine right here on NotRot n/m

Reply by Linda_H/FL on 6/16/11 8:38pm
Msg #386545

Chris...and companies accept the $35k?? n/m

Reply by MW/VA on 6/16/11 9:14pm
Msg #386550

Why not? It was the XYZ that pushed the 100K requirement.

It's been a long time since anyone even asked me how much I carry. I now have $75 SA E&O, plus a business liability policy. After all, I'm insuring myself, not any tc or ss.

Reply by Jack/AL on 6/16/11 9:54pm
Msg #386557

$10,000 does the trick in Alabama.

That's what is required and what I have. Most or all signing services and title companies with which I've registered have asked for proof of my E & O insurance and bond coverage. I've registered with approximately 200 companies, but I've seen only one or two that actually require more than $10,000. Others have just accepted my input without mention of whether the amount is low, so I suppose they're happy with it.

Reply by Moneyman/TX on 6/16/11 9:51pm
Msg #386555

Haven't had one yet tell me it was not enough. n/m

Reply by Linda_H/FL on 6/17/11 7:32am
Msg #386571

Maybe the companies that request it don't read the

policies they receive after all? I've had many companies tell me $100k is required.

I've carried $100k since I started simply because I own a house and want to protect that - but have noticed that many signup packages state the $100k requirement.

Reply by Moneyman/TX on 6/18/11 12:33pm
Msg #386815

Re: Maybe the companies that request it don't read the

Several of the signup packages also <originally> have something to the effect of holding me responsible for their mistakes. I cross that part, and others, out on many of them before I sign them.

Several of the companies I have dealt with as for at least $35K or just to prove that I carry E&O without naming a number. Lately I have seen more that have an increased amount, such as $100K. Like others, I think that is the result of XYZ pushing it more than any real necessity.

Several of these companies want more "experience", more "certified" SAs, more flexibly from the SAs, the SAs to take more of the responsibility yet they want to offer less and less for all the increased "protection" THEY seek. jmho

Reply by Lee/AR on 6/17/11 9:33am
Msg #386584

When I first started this biz in 1993--nobody asked nor cared about E&O. I had none back then. Didn't have any until 2001--and then it came as a freebie equal to the Bond from the co. that carried my $5,000--you read that right--Bond. That was good with everyone who asked for it (not that many) until just this year when only one company wanted 10K.
imho, it's being asked for like a bgc---because they can and it 'looks good'. Personally, I think business liability insurance is a better deal.

Reply by FlaNotary2 on 6/17/11 9:58am
Msg #386586

I am embarrassed to say that I only carry $1,000 E&O

because that is what came with my bond. When I renew in the next year I will be getting a $5,000 policy. Anything more than that, based on the type of notarizations I routinely perform, will be useless. Heck, even the $1,000 E&O may be useless. I have never notarized for a million dollar transaction, and I rarely encounter loan docs. Where I might have liability is wills, because I notarize a lot of them. But I am always careful; I prepare the wills in my office (as a paralegal, not a notary), and the certificates are already filled in and statutory compliant when they are printed.

I do believe that every notary (signing agent or not) should carry at least $5,000. Yes, I know that sounds hypocritical, and it probably sounds arrogant to say that I don't often make mistakes, but with my finances being what they are, and considering that business is so slow that I've performed maybe 10 notarizations in the past month, if that, I can't warrant spending the extra money at this moment. When I renew, however, I will be purchasing the $5,000 policy.

I have found that clueless notaries (the ones who make the most glaring and obvious mistakes on a regular basis), don't have E&O much less know what it is. But notaries who are somewhat knowledgeable (who are less likely to make mistakes), will be prudent enough to purchase E&O. The types of errors that the typical clueless notary might make would probably not be covered under E&O anyway. (Example: "This person presented a voter card with no photo as ID and I thought that was OK"... that isn't an error/ommission, it's because the notary doesn't know what they are doing. Errors cover "forgot to administer an oath" (NOT "I never administer an oath because I didn't know it was required"); "didn't sign my name correctly this time" (NOT "I always sign my name incorrectly"). It just depends, I suppose, on whether it was truly a one-time error, or consistent bad practices on the part of the notary. "Forgot to put a certificate on a document" is not an error. "Forgot to stamp it", is an error.

If that makes sense.

MHO

Reply by Linda_H/FL on 6/17/11 10:08am
Msg #386589

It doesn't matter if you do 1 or 100 notarizations

in a month - it only takes one claim for damages due to notarial error to subject the notary to loss -

I think coverage decisions should be based on amount of assets to protect - and as I've said, since I own a home, I protect that - thus $100k.

Reply by FlaNotary2 on 6/17/11 10:16am
Msg #386595

I base my coverage decision on

the likelihood of me making an error that falls within the scope of my E&O policy.

Keep in mind that most of what I do on a regular basis is weddings and court documents. As long as I check ID, administer an oath, the person personally appears, and I complete a statutory jurat, the likelihood that my valid notarization will cause someone to lose money is slim to none.

This is JMHO. The majority of my notarizations are for clients in my office. Even if I did own a home (which I will by the end of the year), I could not justify more than $5,000 E&O.