Why do notaries need E&O insurance?
Notary errors and omissions insurance is designed to protect a notary against a mistake made during the notarization process. The first thing to remember is that a notary bond is not the same as insurance. A notary public needs a surety bond in most states. A notary also needs an insurance policy, known as E&O insurance, which is a type of professional liability. That policy protects the notary against an unintentional error. The protection includes indemnity, and it can also include legal defence.
Notary E&O insurance compared with a notary bond
Notary E&O insurance protects you against an unintentional mistake. To get a commission, a notary usually has to buy a surety bond, but not E&O insurance. A bond does not protect you the way E&O insurance does, because a bond protects the public against a negligent mistake. E&O insurance protects you, the notary.
When you decide how much coverage to buy, look at what the companies that hire you require. Then look at how much you need to protect your own assets. Even an honest mistake can leave you liable for the loss to your client.
How much is notary E&O insurance?
Many carriers offer a policy, and some focus on low cost notary E&O policies designed for an individual notary. A package of general liability and E&O insurance starts at around $200 a year. You can get proof of insurance online after you buy.