What is Errors and Omissions Insurance and Why Do Notary Loan Signing Agents Need It?

I'm often asked, what exactly is Errors and Admissions insurance and why do notary loan signing agents even need it? Errors and Omissions Insurance, also known as E O insurance, is liability coverage that is created to protect the signing agent's personal and professional assets and if a mistake is made during the notorial process that causes the client to suffer any financial losses. So the question is, why do you need Errors and Omissions Insurance if you don't plan on making any mistakes? The first thing to understand Signing agents are notary publics first and foremost and can be held personally liable for the full amount of damages caused by any wrongdoing that has happened during the loan signing. As a notary public loan signing agent, there are a lot of mistakes that can be made accidentally and frankly, it's why we get paid so much money. But if you are found liable for your mistake, you will need to pay whatever the judgment dictates, as well as any legal fees to defend yourself. And this is why there's Errors and Omissions Insurance. Errors and Omissions Insurance will pay the cost of of any claims and lawsuits resulting from your unintentional errors up to your policy limit. So if you have a $100,000 policy, it will cover you up to $100,000. Not only will E O insurance pay out your damages to an injured party after a court verdict or out of court settlement, but it will also pay your attorney's costs, your court costs, and any other defense costs up to your policy limit. Remember, if someone blames you for something you didn't do, you could still be faced with court costs for defending yourself. And the beauty of errors and admissions coverage is that they would cover these costs for you. It would not come out of your pocket. And if the claim is legitimate, your policy will pay for your damages and legal expenses up to your policy limit. Errors and Omissions Insurance is just like car insurance. You'll be glad you have it when you need it. And like car insurance, it will cover your personal assets even if you're wrongly accused of any wrongdoing. In conclusion, Errors and Omissions Insurance will cover the insured notary for unintentional actions performed during the term of the policy up to the policy limit. Make sure to read your fine print. But most policies will cover you while your policy was in place. So let's say an error occurred in 2010 and you had your policy at that time. But someone blames you for some misconduct in 2012 and your policy has already expired. It is not unusual for the policy to cover your claim as long as you are covered when the unintentional mistake actually took place. The biggest misnomer notary public loan signing agents have is they think that their state required notary bond acts like E and O insurance. It does not. The notary bond protects the public, not you. If the surety company makes a payment on your claim, you are required to pay them back. E O insurance pays your claim and legal expenses up to your policy limit and you don't have to pay them back for the claim. The state required surety bond protects the public you are working for, not you. Those are the differences E O insurance is not required by law to have as a notary public but as a signing agent. I think you can now see why it is imperative to have. It is there for you to reduce your risk and avoid the financial loss of any potential lawsuit. However, while it's not required to have as a notary public, 99% of escrow companies, title companies and signing services do require it. My recommendation is that you get a hundred thousand dollar policy at a minimum. That is what most title companies prefer. Plus it gives you the most peace of mind and the cost is about $20 a month or less. If you need a good referral for errors and omissions insurance, click on the link on this video or you can simply google it. There are many companies out there that provide E no insurance for notary loan signing agents. I'm Mark, I teach the loan signing system and I look forward to helping you make money as a notary loan signing agent.