That is a good point Alix. With the thin profit margins, E&O premiums can increase much faster than profits. But, from their prospective the more work you are doing, the more potential liability they have outstanding. Their risk increases based on the amount of work you have done - not necessarily how much you are making.

I think the fact that you do require your abstractors to carry E&O does help to reduce your premiums.  However, it doesn't completely absolve you of risk. Because E&O is a claims made policy, if you have a few abstractors go out of business and they drop their coverage (or they just can't afford it anymore), your insurer would be stuck with the claim.

More people need to understand the risks and the importance of carrying E&O coverage... and, most importantly, build the expense into their fees. There is so much competition that doesn't carry the coverage, that it is very difficult for those of us who do pay for it to compete.

Best,
Robert A. Franco
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