Notary Errors & Omissions Insurance: A Simple Explanation
What is Notary E&O Insurance?
This is a professional insurance policy that protects notaries public from financial losses due to mistakes made while performing notarial acts. Unlike a surety bond (which protects the public), E&O insurance protects you, the notary, from the costs of claims and lawsuits.
Who Needs This Insurance and Why?
This insurance is highly recommended for every commissioned Notary Public, and is required by law in some states.
Who: All notaries public who perform notarizations for the public.
Why: Even careful notaries can make mistakes, and those errors can lead to expensive lawsuits. This insurance provides crucial financial protection for your personal assets.
Key Coverage Details
Notary E&O insurance typically offers:
Coverage Amounts: Varies by policy (commonly $15,000 to $100,000)
Crucial Difference from Bonds: This is insurance that protects you. If a claim is paid, you do not have to repay the insurance company (subject to policy terms).
What Does This Insurance Protect Against?
This insurance covers financial losses resulting from notarial errors, including:
- Improper identification of signers
- Failure to properly complete notarial certificates
- Missing journal entries or incomplete records
- Notarizing without the signer present
- Administrative errors in the notarization process
- Legal defense costs for covered claims
- Negligence in performing notarial duties
Why This Insurance Matters
This protection serves vital purposes for notaries:
For Notaries: Protects your personal savings, home, and other assets from lawsuits arising from unintentional mistakes.
For Your Business: Allows you to perform notarial duties with confidence, knowing you have financial protection.
For Clients: Provides assurance that you’re a professional who takes your responsibilities seriously.
For Your Peace of Mind: Even small notarial errors can lead to significant financial consequences for document transactions.
Remember: While a notary bond is often required by law to protect the public, E&O insurance is the protection that actually protects you and your personal finances from the high costs of legal claims.