Saw an excellent webinar about predatory law practices and personal-injury “sharks”. Those high dollar E&O policies are apparently like chum in the water to these bottom feeders -
Whether you’ve actually done anything wrong is moot; they know your insurance company will pay out a certain percentage of your policy limit rather than go to court to defend you, and there’s not a thing you can do to stop them. Unless you do a lot of GNW, stick with the $25,000. If you are booking for Fidelity through a signing company, you are a subcontractor for the SC - their million dollar E&O will take the hit.
1 Like
This is interesting because I had signed up for a great company back in July for work in my area, and they just got back to me this week. They asked me all the questions and then sent me the package for me to sign up.
I noticed that one of the requirements is that the notary must have $100,000 EO to be work with Fidelity National Title Company. If this company has plenty of singings in my area, it seems it would b worth it. If they don’t then I won’t sign up.
I guess at this juncture I am at a loss as to what to do.
Not if you are working through a signing agency, Susan. The agency carries the high EO, you are covered as their subcontractor. I struck out the $100,000 and entered $25,000. I continue to do Fidelity signings - 3 or 4 a month - for the agency from whom I receive Fidelity signings. Were I to receive F signings directly, I would consider the higher amount.
Thank you, Judi! I will do that and see where it gets me. This is not direct Fidelity signings, it’s through Notaries To You, which I researched as having a great reputation.
Susan,
As a licensed insurance agent who specializes in notary liability insurance, I have to respectfully disagree with some of Judi’s comments. I’m not saying Judi is wrong. I’m saying:
-
You (the notary) are liable for the mistakes that you make. The Plaintiff will come after YOU and you are better off to have sufficient insurance protection. Let’s say you get sued for $100k but your policy is only for $25k. The court will award a judgment for $100k (if found guilty). The Plaintiff has choices. They can either agree to just take the $25k, or they can place a lien on your home for the remaining $75k. Just because you chose to underinsure yourself doesn’t mean that you’ll limit your liability exposure.
-
I used to advertise the amount of e&o insurance coverage I had in-force as a notary/nsa. When I got started I put all of that information - including THE POLICY NUMBER on my website!
Yep, dumb, notary newbie move on my part. There was no need for me to advertise that information publicly. Now, I simply say that I’m “licensed - insured - bonded”. When signing up with new companies I send them a copy of my policies. -
Judi is right that a Plaintiff has the option of suing the notary or suing the signing service company. But…there are limits on those policies. A million dollar policy sounds like a lot of money. But what if the signing service has a lot of NSA’s contracted? If it’s a large signing service it’s possible that their policies have paid out on claims several different times. If they are at or near their policy limits, guess who is gets targeted? That’s right, the notary!
-
$100k of Notary E & O is becoming the norm now for companies that pay signing agents a competitive fee, This isn’t what I think. This is what I’m hearing from experienced NSA’s who have been around for years. And, Notary E&O isn’t that expensive. Remember, these policies have to satisfy the judgment that was awarded in court AND pay attorney fees. According to a source in the State of Indiana, the average notary liability claim is now $18k. That excludes attorney fees.
-
I’m surprised that more companies aren’t requiring that we carry Signing Agent E & O. That may change over time. We’ll see. I’m also surprised by how expensive Signing Agent E&O is. But when I see all the different errors that it covers, it makes sense - to me an insurance agent.
The last thing I will say is this. I continue to be surprised at the number of notaries who are becoming signing agents. I thought by now we’d see more people dropping out of this market, but it doesn’t look as if it’s happening . As the number of NSA’s increases, the fees that are being paid is decreasing. It’s getting harder and harder to differentiate yourself from the competition. Having sufficient notary liability insurance is one small way for you to be different. Everyone else may have $25k but you have $100k - or more. This (to me) is important especially if you’re in this game for the long run.
Sorry for the long sermon.
Michelle L. Riley aka “The Bond Lady”
3 Likes
Michelle, please don’t be sorry for your lost post. I happen to agree with a lot of what you said. In fact, just a few days ago I upgraded my E&O from $25,000 to $100,000. It was not as expensive as I thought it would be for the remainder of my 4 year commission. Now I am waiting for the actual policy so that I can go to where I’ve signed up and upload that policy and say, “Hi, I’m now VERY insured.” 
3 Likes
[“5) I’m surprised that more companies aren’t requiring that we carry Signing Agent E & O. That may change over time. We’ll see. I’m also surprised by how expensive Signing Agent E&O is. But when I see all the different errors that it covers, it makes sense - to me an insurance agent.”]
Yes, that’s just it: The TC wants the convenience of a Signing Agent (and thus the higher E&O), when in actuality anything more than a notary designation requires a License. They have been pushing Title Insurance Licenses for notaries with any involvement in Real Estate closings in VA. I believe companies are looking for ways around having their notaries licensed. In many States, the notaries, aka NSAs, don’t come under the same scrutiny - and in my opinion they should. They are performing roles that cross over the notary witness line; if anybody needs SA Insurance, they do! True, we have to wear the SA hat in completing some of our duties, but raising my regular Errors and Omissions is misleading because I don’t want any to assume my powers reach beyond that of a NP.
1 Like
Valid points, NVLS!
Now you got me thinking. Something tells me if the change were made so that notaries would have to be Title Insurance Agents in order to do signings/closings, that fees would go up as well. I need to ask someone in Maryland (where it is a requirement) what impact it has had.
None from what I gather. I am planning to get firsthand experience soon! 
The politics of this is mind-blowing. Once you have the Title license then you are “licensed, bonded, insured.” They want all the bells and whistles whilst shoveling out a nominal fee to the “notary” to witness signatures.
It would be nice if a “meet in the middle” approach could be used - allowing a Certification (dear Lord, there’s that word again) in lieu of the higher E & O. Would have to be legitimate. An approved Title Course!??? lol
We can only hope and dream, NVLS. LOL
PS: You mean to tell me that you can’t charge higher fees being that you have all that knowledge and expertise? Talk about unfair! Well, it is what it is.
Agree totally with judikidd
I been getting quotes and every company been quoting me $250k and above. I am new so cost is an issue, How do I get a quote for $100k
Notary Rotary - $100k Notary E&O for 4 year term - $240.00; or you can buy it one year at a time or for lesser amounts
1 Like
Linda is right. It just depends on who you buy from. I can sell you $100k of E&O if you’re in Alabama or Texas. If you are somewhere else, then check out Notary Rotary or the NNA’s website.
Let’s get the nomenclature right: It’s Errors and Omissions insurance–E&O is abbreviation. Covers notarial work only.
Signing Agent Insurance covers more. Either way, more is not necessarily better as it just makes you a bigger target, imho.
Wait… what’s the difference between E&O and Signing Agent Insurance?
No idea. I carry $100k of E&O because Fidelity requires it of independent Notary Signing Agents (but not of those listed as an approved subcontractor notary through a service). $25k was just fine up until then. Try reading those requirements again. Often you will discover that the $100k is actually a requirement for a SERVICE, not an independent notary who does not subcontract work to others.
If you purchase your 100K Policy when you renew your commission, Travelers Insurance fee for my entire 4 year term was only $170.00. Got mine through Notary Rotary. I’ve dealt with them for over 10 years. Awesome “Member Only” prices on ALL notary supplies. Love 'em!
Okay - better late than never I guess…my apologies:
Straight E&O Insurance covers errors you make AS A NOTARY - notarial errors in notarizing…not completing your cert right, not identifying the signers…notarizing when you shouldn’t…that sort of thing. Offers NO coverage for your actions, or errors, while doing loan signings
Signing Agent Insurance covers you for what you do with loan signings (and other package signings I would guess) and I believe also covers notarial errors.
Check with an agent to be positive. And again, sorry this took so long…I thought this question had been answered.
Hope this helps
1 Like
Your points and clarifications are very helpful, Michelle! I am a fairly new notary/signing agent and it was very useful for me to get some context about standard expectations in the field