Notary Errors and Omissions Insurance

No matter what position we're in, we all make mistakes due to fatigue, distraction, and being overworked. Unfortunately, when you make a mistake as a notary, it often concerns important and sensitive documents. Even an unintentional error or honest mistake can cost you a lot of money. You don't want to put your personal or business assets at risk, which is why having notary insurance is critical.

Fortunately, a local independent insurance agent can help you find the right notary insurance. They'll get you set up with all the coverage you need for protection against professional errors and negligence. But until then, here's a breakdown of notary insurance, what it covers, why it's necessary, and more.

What Is Notary Error and Omissions Insurance?

The key component of your asset protection and risk management coverage is notary errors and omissions insurance coverage, sometimes called an E&O policy. This special form of professional liability insurance protects you against financial losses if you make a professional error or omission, such as if you unintentionally notarize a document improperly. This policy does not protect against intentional errors, nor will it cover any liability issues outside of your notary practice.

What Does Notary Errors and Omissions Insurance Cover?

Notary professional liability insurance can reimburse you for the cost of lawsuits and other damages if you make a professional error or omission that causes harm to one of your clients. A notary E&O policy can cover the following expenses if a claim is filed against you:

There are three kinds of notary errors and omissions coverage to consider:

Keep in mind that even though a notary errors and omissions insurance policy isn't technically mandatory by law, it's still a must-have coverage. According to state laws, a notary public has unlimited financial liability if they cause the public harm as a result of an error or omission.

Because lawsuits can be extremely expensive, protecting yourself with the proper coverage is crucial for your financial recovery. A local independent insurance agent can help you get all the protection you need.

What Is a Notary Public Surety Bond?

Most states require notaries to carry a notary bond while in office. A notary bond is a surety bond issued by a state-licensed company that protects the public if the notary makes a mistake that causes financial damage. Unlike E&O insurance, this bond covers intentional acts by the notary as well as unintentional acts. Normally, the bond amount ranges from $500 to $15,000.

Bonds are not an insurance policy. If the notary has to pay a claim and the bond is used, the money must be reimbursed by the notary, as required by law. Client damages can exceed the amount of the bond. In such a case, the remaining damages may or may not be covered by errors and omissions insurance, depending on the intent of the notary who committed the error.

The Difference Between Notary E&O Coverage and Bonds

As a notary, you need not only professional liability insurance but bonds, as well. While an E&O policy protects you against financial losses due to your professional errors and omissions, bonds help protect the public you work with in case of a mistake on your part.

Notary bonds offer your clients a guarantee that they'll be reimbursed if you make a mistake while working with them. This offers clients peace of mind and confidence when agreeing to use your services. In most states, you're actually required to hold a notary public surety bond in order to perform notary work.

In contrast, notary E&O insurance can help you perform your professional duties knowing that you have financial protection in case of a costly error. An independent insurance agent can help you find the right notary bonds and E&O coverage.

Additional Business Insurance Coverage for Notaries

Notary insurance primarily consists of an errors and omissions policy that protects you if a client experiences a loss or injury due to your negligence, misinformation, or other errors. Additionally, there are other types of business insurance coverage you may want to consider to complete your package. These include:

Your independent insurance agent can help you build a complete notary insurance policy.

What Gaps Does Signing Agent E&O Cover?

Many traditional notary E&O policies only cover the actual notarizations in a loan package. Signing agent E&O policies would also cover additional mistakes, such as:

Ask your agent about signing agent E&O insurance and if it's a good choice for you.

How Much Does Notary E&O Insurance Cost?

The cost of notary professional liability insurance can vary depending on many different factors. These can include:

• Your location
• The amount of coverage you need
• How long you've been in business
• Your personal claims history

Your independent insurance agent can help you find affordable notary E&O insurance near you.

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Here's How an Independent Insurance Agent Can Help

As a notary public, you know the risks of notarizing important and sensitive documents, and you most likely take the utmost care to ensure paperwork is done correctly. Yet, sometimes errors can still happen.

Don't let one honest mistake damage your business and personal finances. The right coverage can put your mind at ease, and an independent insurance agent can help you get it fast. Independent insurance agents have access to multiple insurance companies and can shop and compare policies and quotes for you. They'll make sure you get set up with the best notary E&O insurance coverage at the best possible rate.