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What is Errors and Omissions Insurance and Why Do Notary Loan Signing Agents Need It? - YouTube
Channel: Mark Wills
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I'm often asked what exactly is Errors
and Omissions Insurance and why do
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notary public loan signing agents even need it?
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Errors and Omissions Insurance also
known as E & O Insurance is liability
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coverage that is created to protect the
notary public loan signing agent's personal and professional
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assets if a mistake is made during the
notarial process that causes the client to
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suffer any financial losses. So the
question is why do you need Errors and
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Omissions Insurance if you don't plan on
making any mistakes? The first thing to
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understand is signing agents are notary
publics first and foremost and can be
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held personally liable for the full
amount of damages caused by any
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wrongdoing that has happened during the
loan signing. As a notary public loan
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signing agent there are a lot of
mistakes that can be made accidentally
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and frankly it's why we get paid so much
money but if you are found liable for
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your mistake you will need to pay
whatever the judgment dictates as well
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as any legal fees to defend yourself and
this is why there's Errors and Omissions
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Insurance. Errors and Omissions Insurance
will pay the cost of any claims and
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lawsuits resulting from your
unintentional errors up to your policy
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limit. So if you have a $100,000 policy
it will cover you up to $100,000. Not
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only will E & O Insurance payout your
damages to an injured party after a
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court verdict or out of court settlement
but it will also pay your attorneys cost,
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your court costs, and any other defense
costs up to your policy limit. Remember
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if someone blames you for something you
didn't do you could still be faced with
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court costs for defending yourself and
the beauty of Errors and Omissions
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coverage is that they would cover these
costs for you. It would not come out of
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your pocket and if the claim is
legitimate, your policy will pay for your
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damages and legal expenses up to your
policy limit. Errors and Omissions
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Insurance is just like car insurance.
You'll be glad you have it
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when you need it and like car insurance it will
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cover your personal assets even if
you're wrongly accused of any wrongdoing.
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In conclusion, Errors and Omissions Insurance will cover the insured notary public loan signing agent
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for unintentional actions perform during
the term of a policy up to the policy
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limit. Make sure to read your fine print.
But most policies will cover you while
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your policy was in place. So let's say an
error occurred in 2010 and you had your
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policy at that time but someone blames
you for some misconduct in 2012 and your
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policy has already expired. It is not
unusual for the policy to cover your
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claim as long as you are covered when the
unintentional mistake actually took
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place. The biggest misnomer notary public loan signing agents have is they think that their
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state required Notary Bond Acts like E
and O Insurance, it does not. The Notary
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Bond protects the public, not you.
If the surety company makes a payment on
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your claim, you are required to pay them
back. E & O Insurance pays your claim
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and legal expenses up to your policy
limit and you don't have to pay them
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back for the claim. The state required
surety bond protects the public you are
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working for, not you. Those are the
differences. E & O Insurance is not
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required by law to have as a notary
public but as a signing agent I think
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you can now see why it is imperative to
have. It is there for you to reduce your
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risk and avoid the financial loss of any
potential lawsuit. However well it's not
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required to have as a notary public
ninety-nine percent of escrow companies,
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title companies, and signing services do
require it. My recommendation is that you
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get a hundred thousand dollar policy at
a minimum. That is what most title
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companies prefer plus it gives you the
most peace of mind. And the cost is about
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twenty dollars a month or less. If you
need a good referral for Errors and
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Omissions Insurance click on the link on
this video or you can simply Google it.
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There are many companies out there that provide E & O Insurance for notary public loan signing agents.
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I'm Mark I teach the Loan
Signing System and I look forward to
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helping you make money
as a notary public loan signing agent.
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