I agree that you should hold your ground with this company. Perhaps a question should be posed to this company - to what extent are they using the provided search? If this company is also using you, the abstractor, as it's title examiner then the blame lies with them.

I , too am fully insured, but also include a disclaimer. The disclaimer does not state that I am not proud of my work. Rather it provides that the search is provided from public records and that liability does not cover any error due to misinformation provided by such records. My searches will also include notes to the clients of observed deficiencies in the chain of title. This is provided as a courtesy to the client and does not claim to clear title. I will inform them on the search that a wife did not sign off, a death certificate was not recorded or that there is no record of probate papers filed on an estate. If a title company proceeds with a transaction without addressing any noted deficiencies, the liabilty now lies with them. The abstractor has no control over which transaction closes or does not close. I was once accused by a title company of losing a deal for them because my report showed a mortgage that had no discharge of record. They faxed over a copy of the recorded discharge provided to them by the mortgage broker. It turns out that they did close the deal based on this information. For my own piece of mind, I further researched the provided discharge to see how this could have been missed (mistakes do happen - that's why we are insured). Still the Liber and page of the provided document could not be found, The copy sent as proof of discharge contained a tax certification by the county treasurer. Who certifies a discharge? As it turns out, the discharge provided was a cut and paste job and a forgery. Is the abstractor to be held liable for this type of practice? By the way, this particular title company has ceased operations, it's owner declared bankruptcy and is currently being sued by their underwriter for fraudulant dealings

There are bad abstractors out there, but there are also many bad title companies. I stand by the quality of my work and am willing to go the extra mile for my clients.  For far too long we have been made the scapegoat for shoddy title examination. The title companies, in an effort to save money, are using the search reports for more than what they were intended for. A disclaimer notifies the client that your liability only covers the scope of your work. Don't like my disclaimer - send your work elsewhere.