It really is in your best interest to carry E&O insurance. There are many title companies out there that are in the process of bankruptcy or are being sued by their underwriters. A claim against an abstractor may not be a claim about the quality or accuracy of their work. There is also what is known as a 3rd party claim where a claim is made to indemnify the party being sued. I am currently defending a claim in which I was 3rd partied by Title Resource of Novi who is being sued by their underwriter First American for fraud and non-payment of premiums. Kelly O'Malley has declared Chapter 7 bankruptcy personally and has ceased operations as Title Resource (although word is that she has just started up writing title under a new name!!). The filing of the 3rd party claim was a ploy to buy her more discovery time in order to claim bankruptcy. All evidence exonerates me yet the defense has cost me and my E&O insurance over $25,000.00 so far. I do have a counter claim against her for frivilous lawsuit - but guess what?- she's bankrupt and the possibility of payment is nill! Unfortunately, we live in a litigious world and lawsuits are filed naming everyone under the sun whether or not they have anything to do with it. It is for this reason that E&O is imperative