Why do notaries need E&O insurance?
Notary errors and omissions insurance is designed to protect notary from mistakes during the notarization process. The first thing to remember is that a notary bond is NOT the same as insurance. While a notary public needs a surety bond in most states, a notary needs an insurance policy, which is commonly known as E&O insurance, a type of professional liability, to protect themselves from unintentional errors. Insurance protection includes not only what is known as indemnity, bit it can also include legal defense.
Notary E&O Insurance vs Notary Bonds
Notary E&O Insurance can you protect you from unintentional mistakes. It’s interesting that to obtain a notary commission that a notary often has to obtain a surety bond from a surety company, but not E&O insurance. Think about it, a bond does not protect you from a like E&O insurance because a bond is to protect the public from a negligent mistake. On the other hand, notary E&O insurance protects you, the notary. When deciding how much policy coverage to buy, consider not only what is required by the companies that ask you for insurance, but also how much you need to protect your personal assets. Even if you make a honest mistake, you can still be liabile for the losses to your client.
How much is Notary E&O Insurance?
While many insurance carriers may offer policies, some are focused on offering low-cost notary E&O policies designed for individual notaries. Click here to start your quote for a package of general liability and E&O insurance for around $200 a year. Get instant proof of insurance coverage online.
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