Posted by LisaWI on 3/27/13 10:44am
Msg #463295

NSA E&O Insurance VS Notary E&O

Contemplating getting the NSA insurance.......first question is, does this replace the normal Notary E&O Insurance or would you have to have both? From what I read on here for their insurance, it looks like it would replace and enhance your E&O insurance and you would not need to carry both. But I could be interpreting this incorrectly......

Next question is, has anyone actually purchased the NSA E&O policy and in your opinion, has it been a positive attribute to your business? In other words, has it helped to increase your client list because you carry this insurance compared to when you just carried the Notary E&O?

Im wondering if this would be something that would trigger a potential client into using your services versus someone who just carries the Notary E&O Insurance policy.....

Any and all feedback is appreciated

Reply by SharonMN on 3/27/13 10:49am
Msg #463297

I don't know if it looks better to the client. HOWEVER, I refuse to sign agreements indemnifying the client/borrower/lender for more than the amount of my fee (I'm not getting stuck paying $10,000 in legal fees over a $125 job, even if I do make a mistake.) That's my business model. If I wanted to expand, I would be willing to sign such contracts if I was covered by general business insurance or NSA insurance.

Reply by LisaWI on 3/27/13 10:55am
Msg #463300

Hi Sharon,
That is an interesting concept. How do you go about doing this? When you accept the appt, arent you already saying you are responsible for mistakes and will be held responsible for any actions brought against you should you make a mistake? Im just curious as to how you would say something like this to a client you are working for......

Reply by SharonMN on 3/27/13 11:07am
Msg #463307

Lisa, it comes into play when I am asked to sign a contract INDEMNIFYING the title company or SS. If someone wants to sue me, yes, I have to defend myself in any case. However, I will not sign indemnification agreements, where I pledge to cover damages and costs of defending the title company or SS as well. For example, if there is a case of identity theft, the real person could sue the title company and/or lender saying they shouldn't have given a loan to the imposter. The title company could claim it was my responsibility to verify ID and I would have to cover all claims and the cost of defense. This could happen even if the imposter had a good fake ID, or even if there was no imposter but just a baseless claim by someone trying to get out of a loan they took out.

My business policy is: If I screw up, my liability is limited to waiver of my fee. I consider this the default position and don't explicitly state it unless I'm asked to agree to something different.

Reply by sueharke on 3/27/13 11:51am
Msg #463315

Have you asked a contract or other type of attorney if your understanding is correct?

Reply by LisaWI on 3/27/13 12:30pm
Msg #463328

Re: NSA E&O Insurance VS Notary E&O-Sue

Im not sure if you are speaking with Sharon or me......and what is "asked a contract"?

Reply by Linda_H/FL on 3/27/13 12:45pm
Msg #463339

She meant "..asked a contract attorney..." n/m

Reply by jnew on 3/27/13 10:52am
Msg #463298

If it is similar to Closing E & O it will have a deductible, so it will not relieve your obligation to pay out on a claim. The standard closing E & O coverage when I was in the business (2002) was one million in coverage with a deductible of $2,500.00. The premiums ran about $2,000.00 per year, but I would assume that they are now quite a bit higher.

Reply by LisaWI on 3/27/13 10:59am
Msg #463302

Re: NSA E&O Insurance VS Notary E&O-James

See here: https://www.notaryrotary.com/insurance/notary_insurance.asp?id=
Its not the same as Closing E&O, I dont think anyway.......I believe you are referring to something a Title/Escrow company would carry for their business, correct?

Reply by jnew on 3/27/13 11:03am
Msg #463304

Re: NSA E&O Insurance VS Notary E&O-James

yes

Reply by Linda_H/FL on 3/27/13 12:06pm
Msg #463319

If I'm reading the explanation of the policies in the

Insurance Center correctly, I think you'd need both. Unless I'm missing something, standard Notary E&O Insurance covers notarial acts, the Signing Agent E&O fills the gaps for the Standard Notary E&O Insurance and covers contingencies that may occur with a loan package. I don't see in the SAE&O description where notarial acts are covered.

If I'm wrong I hope Harry chimes in and clarifies.

Reply by JPH13/MO on 3/27/13 12:13pm
Msg #463321

I read it same as Linda but one more thing

The coverage also has to be in effect at the time you are sued, unlike Notary E & O that covers acts done during the time period of the policy. It is designed to take over where Notary E & O leaves off, since Notary E & O ONLY covers the few pages you notarize within a loan doc set and is meant to cover mistakes made within the notarial certificate. Notary E & O would not cover missing signatures, dates or initials on a doc you notarized, for example.

Reply by LisaWI on 3/27/13 12:27pm
Msg #463326

Re: If I'm reading the explanation of the-Linda

one of the bulleted items in the list of things it may cover...
Innocent errors or omissions related to Signing Agent Notarial acts

Im looking at this as covering notarial acts......how can there be a Signing Agent Notarial Act unless you are a Notary......you're either a notary or you arent......right???? lol......

Reply by Linda_H/FL on 3/27/13 12:51pm
Msg #463342

Could be - not sure..that's why I hope Harry comes on and

clarifies this.

One guess is...Notary E&O covers you for errors in any notarial act...the Signing Agent Notarial Act would be docs notarized in conjunction with loan signings only - would not cover GNW work, where Standard Notary E&O Insurance would.

I, personally, think this is double coverage for nothing and accomplishes nothing but painting a big old bullseye on your back - deep pockets here!!

Also note that SAE&O has a cap on the amount of claims paid out -

Reply by LisaWI on 3/27/13 1:16pm
Msg #463349

Re: Could be - not sure..that's why I hope Harry comes on and

I agree with you Linda, but on the other hand, as it stands now, with only the E&O to cover the Notary errors if they should happen, it doesnt cover any other aspect of the loan closing that we do leaving a great big door open to being sued without coverage........I also think that it may help a potential or even current company that you may work for to feel a little more confident using you if you had this insurance, especially if the burden was off of them to cover for mistakes that we might make outside of the Notary mistakes we might make......

Jury is still out on this though, would love to hear from anyone who has actually purchased the insurance and if they can give me any feedback on their experience with it......

Reply by MW/VA on 3/27/13 1:13pm
Msg #463348

You can call NR or use the "contact us" on this site.

They will be able to explain the difference in the two types of policies. Also, I saw Harry post a little while back that you can purchase more than one policy, so you could purchase a combination instead of just one type.