We all make mistakes, due to fatigue, distraction and being over-worked. Unfortunately, when you make a mistake as a notary, you are dealing with important and sensitive documents. Even an unintentional error can cost you a lot of money. You don't want to put your personal or business assets at risk, which is why notary insurance may be a smart investment.
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 business coverage types you may want to include in your insurance portfolio. These include:
The key component of your asset protection and risk management coverage is errors and omissions coverage, sometimes called an E & O policy. This protects you if you notarize a document improperly and unintentionally. This policy does not protect a notary who intentionally notarizes paperwork incorrectly, nor will it cover any liability issues outside of your notary practice.
The E & O policy provides the following protection if a claim is filed against you:
There are three kinds of errors and omissions coverage that you want to be aware of:
Keep in mind a notary errors and omissions insurance policy is a must-have coverage if you are a notary. According to state laws, the notary public has unlimited financial liability if he or she causes the public harm as a result of an error or omission.
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:
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 to the public.
Unlike E & O insurance, this bond covers intentional acts by the notary, as well as unintentional acts. Normally the bond is between $500 and $15,000. This is not an insurance policy. If the notary has to pay a claim and the bond is used, the money will have to be reimbursed by the notary, as required by law.
Damages can exceed the amount of the bond. If this is the case, the damages may or may not be coved by errors and omissions insurance depending on the intent of the notary who committed the error.
As a notary public you know the risks of notarizing important and sensitive documents, and most likely you take utmost care to make sure the paperwork is done correctly. And yet, sometimes mistakes can still happen.
Don't let one honest mistake damage your business and personal finances. The right insurance can put your mind at ease.