Posted by LoraLynne/FL on 5/9/12 9:56am
Msg #420364

E& O insurance vs signing agent insurance

I just renewed my e& o insurance and the insurance co told me that as a signing agent i needed signing agent insurance.. that the e&o insurance only covers notarization not anything else during a signing.. i have been doing closings for 9 years and have not heard of the signing agent insurance .. any info in this..

Reply by MW/VA on 5/9/12 10:11am
Msg #420366

What they told you is correct. The industry has been

selling E&O insurance to notaries, which only covers unintentional errors. It does not cover us as NSA's.
I switched mine last year. Signing Agent E&O is available here through NR. It is more costly than standard E&O, but my primary business is NSA work.
My take has always been that I'm insuring myself against the cost of potential lawsuits. Do I think this is probable--no--but it is possible. Only you can decide what you need to protect yourself & your personal assets.
IMO the whole concept of Notary E&O Insurance Insurance gets confused with the E&O Insurance TC's are required to carry. Also, it is that notorious XYZ organization that has been selling us on the $100K insurance requirement. Many of us are not from states are known for lawsuits at the drop of a hat.

Reply by Linda_H/FL on 5/9/12 10:24am
Msg #420370

Marilyn, does your SA E&O cover notarial errors too? n/m

Reply by MW/VA on 5/9/12 10:26am
Msg #420373

Doubt it, but I only do a small amt. of GNW and I'm not

going to carry both types of insurance. I want to be covered for the majority of my biz.

Reply by MW/VA on 5/9/12 10:27am
Msg #420374

BTW, I also carry business liability insurance. n/m

Reply by Linda_H/FL on 5/9/12 11:00am
Msg #420378

So you don't carry coverage for notarial errors?

Notary work is an integral part of loan signings....Packages I do usually require 10-15 notarizations - that's not covered?

Reply by MW/VA on 5/9/12 11:34am
Msg #420382

Yes, it covers notary work as a SA. It's my understanding

that the standard Notary E&O Insurance does not cover anything to do with loan signings, including the notary work. In NSA work there is a potential that an error would cause a delay in funding or a loan not to fund. IMO that is where our liability lies.
This issue was discussed previously on the forums, and until then I wasn't aware that the standard Notary E&O Insurance insurance would not cover any work I did in the capacity as a NSA.
I'm not a lawyer, so I don't fully understand the ramifications of the 2 types of policies. I opted to take the SA insurance because I felt it provided me with more comprehensive cover.
Why not get a copy of both types of policies from NR & compare them?

Reply by Linda_H/FL on 5/9/12 12:04pm
Msg #420385

You're right...there's a summary in the NotRot Store

and the SA insurance does cover "Innocent errors or omissions related to Signing Agent Notarial acts"

But...it doesn't sound like it will cover any notarial act outside the scope of notarial acts outside the loan signing - like GNW.

Reply by Stephanie Santiago on 5/9/12 3:44pm
Msg #420426

As a SA, I've always just had a high E & O policy. n/m

Reply by Barb25 on 5/9/12 10:41am
Msg #420376

Re: Marilyn, does your SA E&O cover notarial errors too?

I looked at this when I just renewed my E&O. I'd love to get your opinion. Quite frankly, I didn't see a great risk in mis-initialing or late return of documents. Maybe a wrong date on RTC. But is there a great risk of a Law Suit 75K and Up. Am I missing something. These were the highlights of the policy as I saw it. But maybe I am missing something. It's not inexpensive.

Reply by Lizzy on 5/9/12 1:01pm
Msg #420396

Re: What they told you is correct. The industry has been

Where do you get NSA insurance? Are you a member of the National Notary Assn.? Do you fine it necessary? beneficial?

Reply by Jessica Ward on 5/9/12 2:00pm
Msg #420409

NNA isn't helpful on NSA insurance

I called and asked about it, they told me it's completely unnecessary, which as you can see above, isn't entirely accurate.

Reply by NewSigner/FL on 5/9/12 3:36pm
Msg #420424

I just passed my NSA exam with NNA and I have been trying to do a lot of research regarding E&O insurance. There isn't much information about NSA E&O in Florida. I will continue to look but from what i've come across, there is limited information on this subject.

Reply by kathy/ca on 5/9/12 8:24pm
Msg #420450

I have been told my 3 different ins co. that std E & O ins.

WILL cover any errors/ommissions (not just within the notary certificate) done while doing signing agent work and that SA insurance is not necessary.