I think it is the companies decision to find out where I fit in.  All I know is that I work mostly with independent abstractors, and of course as a company I am going to charge the client a bit more for a search to cover my costs (fax, time, insurance, etc.)  There are only certain areas, ones I do myself that I charge $35 or less, and that $35 or less only comes into play if I have worked with the person in the past as an independent abstractor, or at another company.  I will agree after working with independent abstractors for a number of years, I have found that the ones that charge less, really don't care about what kind of work they turn in, and that in return makes me think they don't really want my business.  As far as the E & O insurance comes into play, I choose to not use abstractors if they don't have it.  Because, it goes back to that piece of mind again.  I hate to say it, but everyone makes mistakes, and regardless if you have been doing this for 30+ years or for 1 month, you need that insurance if you are going to receive work from me.  I do find out that although a lot of title companies are looking for the lowest possible price, they will go with that lowest possible price and wait until that person screws up, and then say oh I guess I will give this $55 person a try, then decide in the long run, oh maybe I should have gone with the $55 person before I lost 3 clients.