| What is E & O insurance, and how does it help a | | | | Notary stamp missing (yes, it happens). |
| Notary Public? E & O insurance, or Errors and | | | | The Notary's commission number missing. |
| Omissions insurance, covers a Notary in the event of | | | | Many Notaries also perform loan signing services. In |
| unintentional mistakes that cause injury to a third party | | | | these cases, there is even more room for error such |
| - think of it as "malpractice" insurance for Notaries. | | | | as: |
| Some of you might already know what E & O | | | | Incorrect Notice of Right to Cancel dates. |
| insurance is, and think that it does not apply to Notaries | | | | Documents are missing signer's initials. |
| because they are bonded - a common misconception. | | | | Mistakes on the document(s) are corrected using |
| A Notary bond protects the public and is something | | | | white-out. |
| that must be repaid by the Notary, in the case of a | | | | Notary did not correctly following closing instructions. |
| claim. E & O insurance protects the Notary, and in | | | | Loan Documents not returned in a timely manner. |
| the instance of a claim, the Notary is not expected to | | | | Notary acknowledgement not completed, or |
| reimburse the insurance company. | | | | completed improperly. |
| What types of mistakes are covered by Errors and | | | | Notaries accepting personal checks over $500 (or |
| Omissions insurance? Inadvertent errors, such as | | | | over the amount allowed by State law). |
| failure to affix your Notarial seal, or to properly identify | | | | Checks made out to the wrong company. |
| the signer(s), could subject you to be held liable for any | | | | Though it may not be required by law, Errors and |
| losses. Intentional errors and poor judgment, of course, | | | | Omissions Insurance protects you against mistakes |
| are not covered. If a claim is made against you, even if | | | | that can happen with any notarization. It only takes one |
| it has no validity, you would have the burden of paying | | | | mistake to potentially lose all of your hard earned |
| court costs etc. in defending yourself, if you did not | | | | money, and possibly even your business! Errors and |
| have E & O coverage. With an E&O policy, | | | | Omissions insurance rates vary according to the State |
| you would have no repayment and no minimum or | | | | in which you are a practicing Notary, and the amount |
| maximum deductible would be required. Also, the | | | | of coverage you decide to choose. In some States |
| attorney fees and court costs are covered, up to your | | | | minimal coverage starts out at less than $10.00 per |
| policy limit. | | | | year with maximum coverage at $200.00 per year. |
| Following are a few examples of the common types | | | | Rates do vary greatly from State to State, however |
| of Notary mistakes: | | | | the costs are truly minimal considering the |
| The Notary Stamp is smeared or smudged. | | | | consequences should a claim arise. Considering the |
| The Notary Stamp covers text or signatures. | | | | cost of E & O coverage, it is just foolish not |
| The Notary Acknowledgement is worded incorrectly. | | | | protect yourself. |