Being a notary public comes with significant responsibility. Every time you notarize a document, you’re verifying identity, protecting against fraud, and ensuring that legal paperwork is properly executed. But what happens if a mistake is made—or if a client claims you made one? That’s where Errors & Omissions (E&O) insurance becomes critical.
What Is E&O Insurance?
Errors & Omissions insurance is a type of professional liability insurance that protects notaries against financial losses caused by unintentional mistakes or accusations of negligence in their work.
It doesn’t replace your notary bond (which is often required by law). Instead, it provides an extra layer of protection for you personally. While a bond protects the public, E&O insurance protects you.
Why Notaries Need E&O Insurance
1. Mistakes Happen
Even the most careful notary can make an error—like missing a signature, using the wrong notarial wording, or overlooking a key detail. Some mistakes can cause serious delays or financial harm, especially in real estate or business transactions. E&O insurance covers these risks.
2. Protection from Legal Costs
If a client sues you, even if you did nothing wrong, legal defense can be expensive. E&O insurance can cover attorney fees, court costs, and settlements, saving you from potentially devastating out-of-pocket expenses.
3. Builds Client Confidence
Many title companies, signing services, and law firms require notaries to carry E&O insurance before they’ll work with them. Having coverage shows that you take your responsibilities seriously and are prepared for unexpected situations.
4. Peace of Mind
Knowing you’re protected allows you to focus on providing excellent service without the constant worry of “what if something goes wrong?”
5. Affordable Protection
E&O policies are relatively inexpensive compared to the potential risks. Coverage often starts at a few hundred dollars per year for protection amounts ranging from $25,000 to $100,000 or more.
Common Situations Covered by E&O Insurance
- A document is notarized with an incorrect acknowledgment.
- A notary accidentally misses a required signature.
- A client claims a notarization error caused financial loss.
- A borrower in a loan signing alleges that documents were mishandled.
Without E&O insurance, the notary may be personally liable for these claims.
Notary Bond vs. E&O Insurance: What’s the Difference?
- Notary Bond: Protects the public if a notary commits fraud or misconduct. If a claim is paid, the notary must reimburse the bonding company.
- E&O Insurance: Protects you, the notary, from unintentional mistakes, accusations, and legal costs.
Having both is the best way to ensure protection for your clients and yourself.
Final Thoughts
Notaries play an essential role in protecting the integrity of important documents—but no one is perfect. E&O insurance is critical because it safeguards your finances, your reputation, and your career. It’s not just a safety net—it’s a sign of professionalism that builds client trust and opens doors to more opportunities.
If you’re serious about protecting yourself and growing your notary business, carrying E&O insurance should be a top priority.
