Posted by pat/WA on 6/25/13 5:12pm
Msg #474689

Service Link

Just received notice that Service Link is increasing the Errors and Omissions coverage amount that closing agents are required to have.

Reply by Linda_H/FL on 6/25/13 5:22pm
Msg #474691

Yes..to $25,000 - I would guess most notaries in

the loan signing business have more than that.

Reply by ToniK on 6/25/13 5:25pm
Msg #474692

Re: Yes..to $25,000 - I would guess most notaries in

That's about all I have lol. As long as they keep paying my fees. I'm happy.

Reply by pat/WA on 6/25/13 6:04pm
Msg #474696

Re: Yes..to $25,000 - I would guess most notaries in

It is my understanding that E&O insurance only protects the notary. So why would a SS or Title company care what your coverage is?

Reply by Shoshana/AZ on 6/25/13 7:06pm
Msg #474702

Notarial E&O only covers notarial error.

It does not cover signing agent error. I am self insured. E&O not required in AZ.

Reply by Marian_in_CA on 6/25/13 7:15pm
Msg #474703

Really? They've always wanted $100K from me...

Last time I submitted updated information to them, they said to be sure my E&O was at least $100K.

Personally... in addition to E&O these companies really should be requiring general liability insurance, too. But that's just my opinion. E&O is very limited as to what it covers, and a lot of notaries don't realize it. A good $1M policy is about $40-$50 a month... and worth every penny if something happens.

If companies started doing that, I think it would weed out a lot of the less professional notaries. That alone, would be a good investment, I think... to lighten some of the competition as well as a way to justify proper fees. I think it might also get rid of a lot of the cruddy signing services, too.

Reply by Shoshana/AZ on 6/25/13 7:22pm
Msg #474705

Re: Really? They've always wanted $100K from me...

are you talking about an umbrella policy?

Reply by Marian_in_CA on 6/25/13 7:36pm
Msg #474709

Re: Really? They've always wanted $100K from me...

Business Owners or general liability -- those cover just about anything that could happen, not just limited errors or omissions for notary work. As many have pointed out Notary E&O Insurance won't touch most issues dealing with larger real estate loan packages if the problem isn't related to an specific error or omission related to a notarization.

Reply by Marazz/AZ on 6/25/13 8:25pm
Msg #474718

Re: Really? They've always wanted $100K from me...

I don't know that requiring general liability or increased amounts of E&O coverage is necessarily a good idea. What happened with appraisers being required to carry more is:

It becomes a commodity as a bunch of companies jump on the bandwagon to sell this (these may or may not be good companies). Pretty soon every notary has high coverage, and it's just another checkbox on an application form.

Lenders see another insurance policy they can attack, and another reason to do less due diligence "the notary should have caught that."

Notaries become subject to all sorts of silly suits because most E&O companies would rather settle for $10-$20K rather than end up in litigation. They'll even pay someone off if you did nothing wrong, just to make the claim go away, which will really anger the good notaries.

And lenders will put even more pressure on notaries to sign things that shouldn't be signed, or in way they should not be signed, erroneously thinking even fraud is covered by E&O when it is not.

Homeowners hear you have an insurance policy and now they're suing for stupid reasons, as well.

Check out the appraiserlawblog.com for an eye opening glimpse into the world of E&O gone mad. The FDIC is absolutely the worst offender, and now many E&O companies no longer cover claims from them.

Not saying you shouldn't HAVE good insurance but that insurance is for YOUR benefit, not for a lender or title company. Just another thing to consider when taking signings (or not).

Reply by Lee/AR on 6/25/13 9:18pm
Msg #474723

Marazz/AZ has a valid point that should concern all of us

Think about it before you go jumping on some bandwagon. Seems like a good idea until it becomes a great way for a B to 'get something back'...then watch the nuisance lawsuits go up, right along with the premiums.

Reply by Susan Fischer on 6/25/13 9:46pm
Msg #474726

Great post, Marazz. n/m

Reply by droman_IL on 6/25/13 11:35pm
Msg #474736

Completely agree w/Marazz!! Shouldn't need more than $25K! n/m

Reply by linda/ca on 6/26/13 12:36am
Msg #474740

Thanks for nipping that in the bud, real quick, Marazz/AZ!!! n/m