E&O Insurance Warning

Not a question but a statement. Many new Loan Signing Agents make the mistake of buying an E& O insurance policy only to find out later it only covers Notary activity. So beware. Also beware of this, it is apparently industry standard practice to issue a CLAIMS MADE restriction on the policy. I’ve seen this on E.Munroe & Biberk for Loan Signing Agent/Notary and in the case of Biberk it extends to Notary only acts too (not acting as a Loan Signing Agent), I’m not sure about E. Munroe. What this restriction means is that claims are only covered during the TIME THE POLICY IS ENFORCE. This is bad, if you screw up in the last month of the policy and the signer/bank etc. decide a few months later to sue you, you are SCREWED! Biberk says I can buy a rider/policy to extend my coverage period after I allow the policy to lapse.


Thanks Dan, I had an E&O policy from Biberk that covered both my tax practice and NSA work. I had to place a rider on the policy to cover everything NSA related. I’ve since dropped BiBerk, not because they’re a bad company but due to the cost of the policy. I now have a separate E&O policy.

They were $25 cheaper for $1,000,000 than Markel. But I prefer Markel, Biberk lied to me, I checked about coverage only during the policy period and was told it covered after the policy period, then I got the policy and say the CLAIMS MADE and called them.

Hi Dan. Thanks for posting this!!!
When you say the policy only covers “notary activity,” what else would it cover? Isn’t E&O only for notary activity anyway?
I’ve never heard of Biberk or E.Munroe. Are these companies or insurance providers? (meaning, I buy my policy thru McGlones and the policy is thru Travellers). I’ll definitely ask about the timing cuz problems can arise years after the signing.
Thanks again for the post. I’m about to renew so the timing here is perfect for me.

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Biberk and Munroe are specialty insurance companies. BiBerk is part of Berkshire Hathaway. Many E&O policies only cover Notary Errors and not signing errors. A signing error would fall into not getting a non-notarizable signature, letting a document fall out of the package, basically anything that would result in delayed closing, funding, or voiding the closing. For example in Texas cash out or equity loans has special handling procedures (signing in the offices of a lender, Title Company, or Law Office). Failing to close a loan outside of these requirements voids the closing. A NSA policy provide broader coverage.

Can you recommend a company for NSA insurance?

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What company do you use now?

Merchants. I purchased the policy through NNA. Since the NSA business has sunk I separated my NSA business from my tax practice and went with a separate policy. My current commission expires in February and I’m considering not renewing.

The explanation of claims made policy is quite not right. It isn’t the best, but doesn’t work in the policy term only. It requires to have continues coverage, so each policy will pay a portion from the claim. If someone had a claim, please, share with us!?

The company I used ends the policy and all claims unless the policy is maintained. Unfortunately that means you need to continue the policy after you leave the business. The statue of limitations for liability is 2 or more years for most states.so one must determine how long to keep the protection in effect. But at $400/year for $1 million in E&O that seems a lot. Lastly if only a portion of the claim is paid, the NSA is responsible for the rest and in these days of multi-million dollar properties that could be a lot especially if they add pain and suffering & punitive charges.

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I take care of all insurance certifications for the company I work for during the day. You must be very specific about what you need, or insurance companies will not do it. If a company requests they be added as a certificate holder, most insurance companies will let you email them. Keep an insurance log to keep up to date on all expiration dates, and contact them two months in advance for renewals. I have E&O for Notary, Signing Agent, Small Business, and Cyber Security.