The Ins and Outs of E & O
Homeowners buy homeowners insurance.
Doctor’s have malpractice insurance.
Notaries have Errors and Omissions Insurance (E & Insurance).
So what’s it all about?
What is Errors and Omissions (E &O) Insurance?
Errors and Omissions (E&O) insurance is a type of professional liability insurance designed to protect notaries public from claims resulting from negligence, mistakes or omissions in the course of their duties. This type of coverage provides indemnification for any losses sustained by clients due to errors made during the process of notarizing documents.
Additionally, E&O coverage can provide reimbursement for legal costs associated with defending oneself against such claims. Why Do Notaries Need Errors & Omissions Insurance?
Notaries are often relied upon to attest to the validity and accuracy of documents they are asked to notarize. As a result, if an error or omission occurs in the process, there could be significant financial consequences for the notary, as well as potential damage to his or her reputation. By obtaining Errors & Omissions insurance, notaries are able to protect themselves from the potentially devastating financial impact of such claims.
What’s the Difference Between Insurance and Bonding for a Notary Public?
Errors and Omissions insurance is different from notary public bonds. Notary public bonds, also known as surety bonds or fidelity bonds, are designed to provide financial protection for the clients of a notary in case of errors or omissions by the notary.
In comparison, Errors & Omissions insurance provides coverage for the notary and reimburses them for any legal costs associated with defending themselves against a claim. Additionally, Errors & Omissions insurance provides coverage even if the notary is found to be negligent or in error.
In conclusion, it’s important for notaries public to understand the importance of E&O insurance and the different types of coverage available. By obtaining Errors & Omissions insurance, notaries public can protect themselves against the financial and reputational risks associated with notarizing documents.
What errors Can a Notary Public Make?
Notaries public are primarily responsible for verifying the identity and signature of individuals signing documents. However, they can make other errors in their role as a notary, including:
- Failing to properly prepare and execute notarial acts
- Neglecting to adequately identify signatories
- Improperly witnessing, supervising or attesting to a document
- Failing to properly record notarial acts in the journal
- Making errors while performing any other duties associated with their role as a notary
- Performing unauthorized or prohibited acts
In such cases, Errors & Omissions insurance can provide financial protection for the notary should they be found liable for any of these errors.
What Does E&O Insurance Cover?
Errors and Omissions coverage often covers a wide range of incidents that might occur in the course of a notary’s duties.
Errors & Omissions insurance typically covers any costs related to the defense or settlement of a claim arising from the services provided by a notary public. Such coverage usually includes protection against allegations of negligence, errors or omissions in the performance of their duties.
This includes legal fees, damages and other associated costs such as court reporter fees. Additionally, some policies may also provide coverage for loss of fees, libel and slander, or breach of fiduciary duty.
It’s important to note that Errors & Omissions insurance is not a substitute for professional indemnity or liability insurance. It is important to obtain coverage that meets your specific needs as a notary public.
Errors & Omissions insurance can provide crucial financial and legal protection to notaries public in the event of an error or omission. By understanding the different types of coverage available, notaries can identify the best policy to suit their particular needs. Ultimately, Errors
How Much Does E&O Insurance Cost?
The cost of Errors & Omissions insurance varies depending on the provider, but typically ranges from around $200 to $500 per year. Costs can be higher for notaries who perform more complex services and/or have more extensive liability exposure.
Do different states require different bonds?
Yes! Different states have different bond requirements for a Notary Commission. Check out our list of State Bond Requirements for Notaries broken down by state.
Errors and Ommissions Summary:
Errors & Omissions insurance is an important consideration for notaries public looking to protect themselves from potential financial losses due to mistakes or omissions. By understanding what types of coverage are available and how much it costs, notaries can make an informed decision about the best type of insurance for their needs. With the right E&O coverage in place, notaries can rest assured that they will be protected from any claims resulting from negligence or errors made during their duties as a notary public.
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