The e&o insurance is required by the larger title insurance companies for their benefit. If there is a problem with title, the property owner puts a claim in with the title insurer. The title insurer notifies the abstractor of the problem and of a potential claim against him by the title insurer for a defective search. The abstractor puts the claim in with his e&o insurance carrier. Most of the larger title companies will not do business with an abstractor unless he is insured for errors and omissions to a level satisfactory to them.