That is very bad, and dangerous, advice.  Your liability as an abstractor has nothing to do with your product "being insured."  Your liability is in the form of negligence and the insurance protects you in case you are sued for negligence.  Whether you state your product is "not insured" has nothing to do with a client's ability to sue you for negligence.

And, often times, it is not the client that will sue, it will be their E&O carrier who sues you if they have to pay out a claim, on behalf of your client, caused by your negligence.  When they pay the claim, they are subrogated to your clients rights and they could sue you regardless of whether yoru client required you to carry E&O or not.

Furthermore, your client's E&O carrier may require them to use only abstractors who do carry their own E&O insurance for just this reason.  If they don't follow this requirement, their carrier could potentially deny any claim they might have.

I would never consider doing this kind of work without E&O insurance and I would never advise anyone else to do so either. 

Best,
Robert A. Franco
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