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  1 person liked this post.
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mgadler
California
10 Posts |
 Posted - 12/28/2010 : 10:38:41 PM
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I will be upgrading to $100K E&O Insurance. The costs are negligible and the benefits can be huge. It is just another thing to do though, but it must be done.
Thanks.
Melissa
San Diego Mobile Notary |
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n/a
New York
2 Posts |
Posted - 06/02/2010 : 11:24:28 AM
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As a NYS notary, where do I go to get E&O insurance??
Christine Belin |
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LindaH
Florida
1754 Posts |
Posted - 11/29/2009 : 3:23:51 PM
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Jeremy...I've heard of two who were sued - and both were relative to loan modifications, I believe (at least one I'm positive is connected to a mod)...but I'm sure there are many more who've been sued - the litigation idea is that it's easier to name everyone, right down to the waterboy, right at the outset and drop them later than to try to add someone you missed later on.
As far as "I'm trying to think of what situation a notary could get sued for $100,000" - they can sue for ANYTHING - the notary's name is on the document/transaction at the heart of the lawsuit - it's the final judgment that counts - and everyone has a different idea of the worth of their damages....get a sympathetic enough jury and the notary's drowing in monetary damages without adequate coverage.
The "not taking thumbprints" issue is state-specific - I know it's required in certain circumstance in CA, but we aren't authorized to take fingerprints in FL - we can ask but it can be refused and we can't withhold notary services based on that refusal.
I do agree - if you're in business, $100,000 is a necessary drop in the bucket, especially for those who have assets to protect (a home, savings, etc) and I don't think anyone should operate without E&O.
MHO
Linda
www.notarydepot.com/notary/lindah
http://www.notary.net/websites/LindaHubbell
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jbelmont
California
3106 Posts |
Posted - 11/29/2009 : 1:47:26 PM
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Excess E&O insurance is not a target - its a safety precaution. If you got sued for lots of money, you would be bankrupt without it. I have never heard of a notary getting sued though. Even notaries who screw up loans that lose their lock have never gotten sued to my knowledge.
Better safe than sorry, and its not that much money in the long run. I have lost track what it costs. Perhaps $150-$200 for a four year term for a high amount of E&O? I'm guessing.
I'm trying to think of what situation a notary could get sued for $100,000. The only way I can think of is if a person was cheated out of their home, and the notary unknowingly was involved in the fraud and did something unintentional and careless to facilitate a fraud.
Not taking thumbprints on a real estate document ( Deed of any type ) would be a prime example of this type of neglegence.
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Lisa T.
California
391 Posts |
Posted - 10/16/2009 : 1:42:35 PM
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| I disagree with those that say a $100K E and O policy just paints a target on the Notary's back. It no more paints a target on the Notary's back than higher auto insurance policy limits with an umbrella policy over it......when one has a home and other assets to protect, a higher policy not only makes sense but is quite customary and wise. |
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Lee-AR
Arkansas
678 Posts |
Posted - 10/16/2009 : 09:28:13 AM
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I'm with Bobbi/CT on this. There really is NO legitmate reason for requiring $100,000 E&O. All a notary is doing is painting a HUGE target on your back. Additionally, you can be totally correct in what you have done, but the E&O carrier (not you) gets to choose whether it would be cheaper for them to settle than fight it in court. This is not a direction that needs to be promoted by anyone.
If a person feels they want/need lots of 'insurance', you'd be far better of with General Liability than E&O.
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vince
Kansas
324 Posts |
Posted - 10/09/2009 : 5:31:08 PM
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No complaints from me on what can be used to sort notaries information database. If I do not meet the minimum the company is looking for, I'd rather not be called. How many times did we used to hear, do you speak Spanish?
I carry the $100,000 because a number of companies saw it as important. But I do not carry the $500,000 because it is not a requirement of most companies. |
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PWinFL
Florida
469 Posts |
Posted - 10/08/2009 : 05:16:04 AM
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I think by creating an artificial upper limit ($100K) for notary E&O, you are compounding the illusion by many title companies that the notary E&O will further protect them and/or the notary. What I've learned from title companies and RE attorneys is that lawsuits brought about have had little to nothing to do with the notarial act in and of itself, except in the case of knowingly perpetrating fraud. (In which case, the notary E&O wouldn't protect the notary anyway.)
As has been pointed out previously, from a notarial point of view, the notary bond protects the public. The notary E&O protects the notary only in the performance of a duly authorized notarial act. 90% (or more) of a signing for a lender and title company has nothing to do with being a notary or performing notarial acts. Therefore, the notary E&O does not even enter the picture.
This begs the question, then, how is the signing agent covered? Often, the signing agent is acting at the behest of a title company, either directly or indirectly, and would be covered under the title companies E&O policy. But, that is not true in every case. Therefore the signing agent would need to acquire general commercial liability/E&O insurance. I can see title companies requiring that in $100K or higher, but not in notary E&O.
Never drive any faster than your guardian angel can fly.
I am not an attorney licensed to practice law in the State of Florida,
and I may not give legal advice or accept fees for legal advice.
Visit us online at http://www.PAWnotary.com |
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thensley
Kentucky
32 Posts |
Posted - 10/07/2009 : 6:41:12 PM
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Jeremy, did you ever create a filter so that companies can find notaries with the $100,000 coverage of E&O insurance? I've always carried this amount and think it's a great idea of yours to make it an option for those of us who use this amount, to be able to be found easily by title companies, etc.
Trina Hensley |
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n/a
Florida
1 Posts |
Posted - 05/27/2008 : 4:21:19 PM
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I strongly agree with everything you're saying,I only have 25,000 myself
quote:
Originally posted by BobbiCT
"I'm going to create a new filter for the 100K E&O insured notaries so that companies can find them in a snap."
Not intending to offend, but I will take the opposing viewpoint. Why discriminate against those notaries PUBLIC who do not choose to carry that high E&O? Why not make the E&O target on the notaries back $1 million? It will make them a much bigger target for a lawsuit: Sue the notary, too. Even if we believe the notary was blameless, odds are his/her E&O company would rather settle than fight - internal plaintiff's attorney and notary insurance carrier beancounters does the math and finds it is less expensive to the E&O company to settle than defend an innocent notary just to "make a point."
Since "some" title and scheduling companies want to reduce their annual insurance premium by requiring notaries to carry more insurance, why promote this like you-know-who marketed "must purchase our background check" to stay in business, "must purchase" eNotary seal to get business, "must purchase" to remain competitive...
For me, I carry E&O but see no pratical purpose to carry that much. How many "blameless" notaries public have had a claim on their E&O over say $25,000 for a document signing that they performed according to their state law and and how many have had to pay out. It is the notary's "portion of the blame" for the financial loss that is at issue, not the entire financial loss. But for the notary's actions, this borrower would have not lost X dollars. There are many avenues through the notary signing agent to the scheduling company, to the title company, to the lender to bring their E&O, malpractice and other coverage into a lawsuit. Save those printed instructions
As said, a BOND protects the public/borrower. E&O protects the notary. Why do companies want the notary to carry protection for the notary rather than require a bond that protects the borrower/signing public? Maybe because requirements to carry a bond are more difficult to meet than purchasing an E&O policy?
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Renee
Michigan
549 Posts |
Posted - 05/27/2008 : 08:40:16 AM
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| Thank you, Bobbi - totally agree with you. |
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claudia
Texas
54 Posts |
Posted - 05/27/2008 : 07:00:16 AM
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| I have $35,000. I stay pretty busy except for this month business has been down. I have often thought about raising it. But if it is only for the notary certificates It doesn't seem worth it. I have not had anyone that I work with tell me I had to have more. One time a lender wanted $500 in E&O and they had me do the signing through Notarize 24-7 a signing company with 500 in E&O. |
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BobbiCT
Connecticut
135 Posts |
Posted - 05/27/2008 : 05:04:22 AM
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"I'm going to create a new filter for the 100K E&O insured notaries so that companies can find them in a snap."
Not intending to offend, but I will take the opposing viewpoint. Why discriminate against those notaries PUBLIC who do not choose to carry that high E&O? Why not make the E&O target on the notaries back $1 million? It will make them a much bigger target for a lawsuit: Sue the notary, too. Even if we believe the notary was blameless, odds are his/her E&O company would rather settle than fight - internal plaintiff's attorney and notary insurance carrier beancounters does the math and finds it is less expensive to the E&O company to settle than defend an innocent notary just to "make a point."
Since "some" title and scheduling companies want to reduce their annual insurance premium by requiring notaries to carry more insurance, why promote this like you-know-who marketed "must purchase our background check" to stay in business, "must purchase" eNotary seal to get business, "must purchase" to remain competitive...
For me, I carry E&O but see no pratical purpose to carry that much. How many "blameless" notaries public have had a claim on their E&O over say $25,000 for a document signing that they performed according to their state law and and how many have had to pay out. It is the notary's "portion of the blame" for the financial loss that is at issue, not the entire financial loss. But for the notary's actions, this borrower would have not lost X dollars. There are many avenues through the notary signing agent to the scheduling company, to the title company, to the lender to bring their E&O, malpractice and other coverage into a lawsuit. Save those printed instructions
As said, a BOND protects the public/borrower. E&O protects the notary. Why do companies want the notary to carry protection for the notary rather than require a bond that protects the borrower/signing public? Maybe because requirements to carry a bond are more difficult to meet than purchasing an E&O policy? |
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jbelmont
California
3106 Posts |
Posted - 05/26/2008 : 10:28:47 PM
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| In the next several months, I'm going to create a new filter for the 100K E&O insured notaries so that companies can find them in a snap. |
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Lkemp
Arizona
13 Posts |
Posted - 05/26/2008 : 4:50:53 PM
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I used only $25k for several years but more and more services and title companies were asking for 100K of E & O so I just renewed and raised my E & O to 100K. Hopefully business will pick up again to make it worth the extra expense. Hope that helps you.
LDK |
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crtowles
California
553 Posts |
Posted - 05/26/2008 : 1:31:10 PM
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I think that some want it because someone who is not informed thinks/believes that we should have it. They think that it protects them but it doesn't. It protects the notary only. The bond is what protects the public.
Carmen |
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jbelmont
California
3106 Posts |
Posted - 05/25/2008 : 10:25:56 PM
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| Just to clear this matter up. E&O insures against "honest" mistakes on the part of the notary and not against fraud. I believe it insures only against mistakes on notarized documents and not on other loan documents. A wrong date on a right to cancel could cost the lender a pretty penny, but your E&O would most likely not cover taht. Perhaps the bigger title companies just want you to have the insurance to prove that you are very serious and committed. |
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rwedertz
New Mexico
30 Posts |
Posted - 05/25/2008 : 2:07:48 PM
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| More and more title companies (not just Chicago Title) are asking for a minimum of $100K E&O. It doesn't cost that much, is good for four years and is a business expense. The title companies and some signing companies that I work for have asked for a copy of my E&O, which I have scanned as a PDF document and I send it to whomever needs it. I certainly don't ask them to "guarantee" me some business - you get repeat business by earning it. If you expect people to hire you, you need to advertise, exploit your experience, be certified, background screened, insured, and a develop a reputation for thorough work. Companies want to hire a professional total package notary - one should not try to compete in this business "on the cheap", as there are outlays in every business. The better job you do, the more business you receive. |
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Lee-AR
Arkansas
678 Posts |
Posted - 05/19/2008 : 06:34:36 AM
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| E & O only covers notarial errors...not what we may or may not do as Signing Agents. Frankly, nobody's ever asked me and, if asked, I would not comply unless they would guarantee me a certain minimum/month--not likely. |
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jbelmont
California
3106 Posts |
Posted - 05/19/2008 : 03:19:14 AM
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| Many companies such as Chicago Title want 100K E&O insurance or they won't use you. Are there other companies demanding such a high amount? Is it worth it to get lots of E&O coverage? What is your experience? |
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Question 14 - E&O insurance
