Thank you LindaH for breaking it down for me. This NSA is serious stuff cause we’re dealing with legal documents. I decided to do some research for myself and this is what I found. Thank you for your input. https://www.ermunro.com/insurance/business/signing-agent-liability
Notary Liability Insurance (E&O)](https://www.ermunro.com/insurance/business/notary-liability/) only covers the notarizing you do in a signing. It does not cover your signing agent duties, such as reviewing the documents with the borrower, calculating rescission dates, and returning the date-sensitive loan package.
Lawsuits against signing agents are becoming more common. Even if you are innocent, you could still face significant legal expenses for defending yourself in a lawsuit – and the company who hired you is under no obligation to help you.
As an independent signing agent, you have unlimited personal liability for losses caused by your errors during the signing.
Signing Agent E&O Insurance is designed to fill the gaps not covered by traditional Notary E&O Insurance. Signing Agent E&O Insurance provides coverage for:
Innocent errors or omissions related to signing agent notarial acts
Incorrectly dating the right of rescission
Missed initial or non-notarized signatures
Unauthorized changes to documents
Negligence of the signing agent to complete the documents in a timely manner
In my opinion I don’t think that the companies(Title) are greedy for recouping their loss of fees, when a NSA fails to get a signature, date, notarization, it cost the signer, lender, title company, escrow officer a Re-lock rate which costs anywhere from $800-$3000, a rate-lock extension $400-$1800. And the signer is the one paying for all this loss all because 1 signature was missed by the notary or a date or missed stamp etc. These are just a few of the costs associated with these mistakes made by some NSA’s.
If I was a buyer, and I missed my rate of 2.5% because a NSA failed to get my signature on something, I would be highly upset. And now I would have to pay whatever the current rate is 4.5%. Even though it’s illegal, now I see why the EO or SS is saying back-date or go back and get the signature if not the NSA just cost the company and the signer hundreds of dollars.
Point being, some of these are bogus claims as standard notary E&O won’t cover it - but companies don’t understand that. The ONLY thing that policy would cover is an error in the notariation.
Merchant’s Bonding does also issue E&O coverage - I bought E&O through Notary Rotary - policy is issued through Merchant’s Bonding.
But you’re very right and it’s worth stressing - a bond and E&O are not the same - one MUST have the bond prior to being commissioned - the E&O is optional (unless in those states who have included an E&O requirement for RON commission, like Florida).
Hey I’m Patricia Brooks with signed/sealed delivered. I’m in Jacksonville Florida. This is new to me I’ve been working with my sister, but now I’m on my own. I’m trying to find my way. I’m pretty sure that God will see us through. The only insurance I have is the same thing I had from my notary license. So we’ve been told that I need to get more, I’ll be calling NNA this week to update my insurance.
I can offer a no-obligation quote to anyone wanting to know more about errors & omissions (E & O) insurance.
My office is open Monday - Friday from 3:30 p.m. until 10:30 p.m. Feel free to give me a call if you are a notary who has also formed a business (LLC et cetera).
Good question but I can up you one…what if you obtain your E & O ins and then eventually you quit being a notary and let’s say you a claim is made on you a year or two later and you have terminated all coverage…are you liable and or covered by your old policy?
It’s critical to understand that e&o insurance protects one as a Notary Public and the duties surrounding that role. Acting as a SA is a professional designation and would require a different type of coverage. Most SAs rely on their skills, as a general liability policy for that can be pricey, but it’s available from certain providers.
