Jennifer, You need to consult a local attorney on this question. Some states do permit you to disclaim (exculpate yourself from liability) others do not. You will have to determine the law of the state in which you perform title searches. If your state does permit you to disclaim liability you you will need to inquire further whether there are any conditions placed on the ability to disclaim. If permitted to disclaim liability, you should have your attorney draft the language of the disclaimer. You should also get approval of the disclaimer from your e&o insurance carrier to make certain that you do not invalidate your insurance policy. If your state permits disclaimer you may have to draft it into a contract with your clients that they agree to up front rather than just drafting it on to your title abstract or invoice after the fact.
In states such as Connecticut we can not disclaim liability. However, we can limit liability to a reasonable amount by contract with our clients. The insurance companies seem to like this approach. The negative side is that most clients want you to use their contract contained in a vendor set up package, which contract does not contain a clause limiting the abstractor's liability.
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