This has never happened to me, but it looks like the insurance company is looking to dump all the responsibility on you & let their client get out from under this.  I'm not a lawyer, so I can't give you any advice, except to say that it seems to me that the primary responsibility for preparing paperwork is on the office that prepared it, not the examiner who recorded the documents.  If the property owner had multiple properties then who are you to say that the documents you were handed to record were wrong?   How much of a search did you do?  Was it a simple update & record or a current owner r/d or something like that.