Notaries' Errors and Omissions Insurance
As the professionals tasked with authenticating identities and signatures on contracts and other important documents, notaries perform an invaluable function. But like many other professionals, they also are vulnerable to lawsuits, which is why notaries' errors and omissions insurance is an important investment.
What is notaries' errors and omissions insurance?
- E&O insurance for notaries covers losses and legal expenses generated by client claims of error, omission, or negligence during the notarizing of important documents, such as contracts and deeds.
- Many suits against notaries are the result of individuals falsely identifying themselves through the signature forgery and false identification, leading to notary error.
Why is notaries' E&O insurance necessary?
- General businessowners policies do not include professional liability insurance, covering losses and legal expenses resulting from client claims of error or negligence.
- Notary bonds do not protect a notary public from lawsuits. Notary bonds protect the public, while E&O insurance protects the notary.
- Claims and lawsuits against notaries are becoming more frequent.
What else should I know?
- Notaries are particularly vulnerable to lawsuits because they handle very important documents (mortgages, deeds, titles, contracts, and so on).
- In contrast to notary bonds, notaries' errors and omissions insurance is not required by law.
- When comparing prices and policies, make sure that the E&O insurance is not renewable every year.