Posted by bfrank14 on 8/30/13 11:14am
Msg #482634

1 Million dollar E&O policy

I finding that more and more title companies in AZ are requiring a Million Dollar E&O policy but can't find anyone that has that high of a policy. Can anyone suggest a company in AZ that offers that high of a policy?

Reply by Linda_H/FL on 8/30/13 11:34am
Msg #482644

I would not fork out the money for $1M E&O

let title or SS cover me under their blanket policy - for which they probably get a far greater premium discount than I ever could.

Reply by bfrank14 on 8/30/13 11:42am
Msg #482647

Re: I would not fork out the money for $1M E&O

I totally agree! Not only that the person that I was talking to kept talking about Fraud and that is why they require it. E&O doesn't cover fraud that would be covered under Liability. They told me that the government is changing things and they want to hold the Notary to the same standard as the Escrow companies. This is getting ridiculous especially when they don't want to pay for the work that they get. They would rather try and pay the low bottom rate and end up with errors instead of paying well and getting what they pay for which; is someone that knows what they are doing.

Reply by VT_Syrup on 8/30/13 12:27pm
Msg #482662

Re: I would not fork out the money for $1M E&O

bfrank14 wrote "E&O doesn't cover fraud that would be covered under Liability." What exactly do you mean by liability? I could be wrong, but the nearest policy I've heard of (and don't have) to "liability" is "general liability". I figured that would cover things like knocking over an expensive vase while walking around the signer's home. It would seem to me that kind of policy would be more suitable for construction contractors, who might do something like cut a tree the wrong way and have it land on the house.

If a notary made a mistake while checking ID, for example, forgot to look at the person's ID, wouldn't that be an error or omission? Wouldn't that be covered under E & O? On the other hand, if the notary did everything a reasonable notary would do, but the signer committed fraud anyway, shouldn't the notary be completely off the hook? (Although the E & O would still be useful to cover attorney fees.) For example, the signer fooled the DMV into issuing a false driver license, and the notary relied on it.

Reply by bfrank14 on 8/30/13 1:51pm
Msg #482670

Re: I would not fork out the money for $1M E&O

We all carry liability insurance and e&o insurance in az. The liability portion covers fraud and the e&o covers errors and omissions. For example a mistake is made and causes the loan not to fund and the borrowers lock expired. This costs on average of $3,000 which is covered by e&o. If either I or the borrower commits fraud this would only be covered by liability insurance.

Reply by VT_Syrup on 8/30/13 3:47pm
Msg #482688

Re: I would not fork out the money for $1M E&O

bfrank14, are you referring to a bond? A bond is sort of related to liability, but only liability for notary errors and misconduct. It is NOT insurance. The bonding company pays the person harmed, if the person harmed can prove the notary is liable for an error. The notary must then reimburse the bonding company.

Reply by MW/VA on 8/30/13 2:01pm
Msg #482672

When will they ever get this straight? Yes, title cos. are

required to carry that much E&O because they have a different set of liability criteria than we do. Notaries do not & should not be asked for that kind of insurance coverage. IMO $50K to $100K is more than enough. You're insuring yourself for legal fees in the event of an error. I also carry business liability insurance, but that's for my own protection rather than someone else's requirement.

Reply by rolomia on 8/31/13 3:19am
Msg #482754

If they'll pay for it, I'll agree to it (ROTFLMAO) n/m