I agree with notary_narayan…and will add that the bigger the policy, the bigger the target on YOUR back. Understand that the entity who decides whether or not to pay ANY claim is the insurance co. You can be right as rain, but if it’s cheaper for the ins. co. to pay than fight the claim (it usually is), they pay.
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I think that in most cases, the lender and title company will cover any errors and omissions made by a contracted notary signing agent. When there is a claim they look for the one with the deepest pocket and that would not be the nsa. I was threatened with a law suit for an error made by my client and if it were not for my documentation of the closing, I could have ended up in court. I did a deed in lieu of foreclosure signing. The deed was sent back to the lender after closing by me. The lender then lost the deed and revived the foreclosure action. The lawyer for the signer called me and demanded that I defend his client against the foreclosure action. I copied all of my emails and the fedex overnight recept and sent it to the lawyer. He could then contact the signing company and the lender seeing that my involvement was only to notarize a document. I always was waiting for the phone call that never came telling me that I was going to court. I decided after that experience I would avoid that work and stick to mortgage closings. It doesn’t happen often, but does happen, even when you do the job correctly.
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@NEWBERRY : In todays world, anyone can sue anyone/ SO what ? If you have truth on side and honesty and integrity in work ! you have nothing to fear ! just some inconvenience and travel to court only if subpoenaed or a defendant in a lawsuit.
How did u get the address label to send to lender? Some packages have two labels. I always verify who to send to ? Its okay to be a newbie, and ok to make mistakes.
Mistakes are the stepping stones to success
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I always scan my airbills and emails for every closing I do. Nice pun, narayan but I was a title agent for 35 years before I started NSA work. One of my grade school friends called me newbie so in a way the reference is excusable
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This was sent to me and seems to explain the difference well…
Signing Agent E&O Insurance is different than Notary E&O Insurance. It’s designed to fill the gaps not covered by traditional Notary E&O Insurance by providing coverage for:
innocent errors or omissions related to signing agent acts,
incorrectly dating the right of rescission,
missed initials or non-notarized signatures,
unauthorized changes made to documents,
untimely completions of the closing due to the sole negligence of the signing
agent, and
slow return of date-sensitive documents.