As a notary public, you play an important role in the legal system. You verify the identities of signers, witness the signing of important documents, and help prevent fraud. However, despite your diligence, errors and omissions can still occur. Notary insurance is an important way to protect yourself and your clients from the financial consequences of these mistakes.
What is notary insurance?
Notary insurance, also known as errors and omissions (E&O) insurance, is a type of liability insurance that protects notaries from financial losses due to lawsuits related to errors or omissions in their work. E&O insurance is common in many professions, including real estate agents, lawyers, and accountants.
Notary insurance is not required by law, but it is strongly recommended. The cost of notary insurance varies depending on the level of coverage and the insurance company, but it is typically a few hundred dollars per year.
What does notary insurance cover?
Notary insurance typically covers financial losses due to errors or omissions in your work as a notary. This can include:
Examples of Covered Claims |
Negligence or mistakes in witnessing or notarizing a document |
Missed deadlines or failure to file documents |
Breach of confidentiality or privacy |
Forged or falsified signatures |
Wrongful advice or guidance to clients |
Notary insurance does not cover intentional fraud, criminal acts, or intentional violations of the law.
Why do I need notary insurance?
Notary insurance is crucial to protect yourself and your clients from the financial consequences of mistakes or errors in your work. Without insurance, you could be personally liable for any financial losses incurred as a result of your mistakes, which could lead to legal action and significant financial hardship.
Additionally, many clients may require that you carry notary insurance before working with you. This is especially true for clients in high-risk industries, such as real estate or finance, where mistakes can have significant financial consequences.
What should I look for when choosing notary insurance?
When choosing notary insurance, it’s important to look for a policy that provides adequate coverage for your needs. Some key factors to consider include:
- The level of coverage: Make sure the policy covers your potential liability for both errors and omissions.
- The cost of the policy: Consider the premium cost and any deductibles you may need to pay in the event of a claim.
- The reputation of the insurance company: Choose a well-established and reputable insurance company to ensure they will be able to provide adequate support in the event of a claim.
Frequently Asked Questions
What is the difference between notary insurance and bond?
Notary insurance and notary bonds are both forms of protection for notaries, but they serve different purposes. A notary bond acts as a form of insurance for clients, guaranteeing that the notary will perform their duties in accordance with the law. If a client suffers a financial loss due to the notary’s actions, they can file a claim against the bond to recover their losses.
Notary insurance, on the other hand, protects the notary themselves from financial losses due to mistakes or errors in their work. It does not cover intentional or fraudulent actions.
Do I need both notary insurance and bond?
While notary insurance and notary bond serve different purposes, it is not always necessary to have both. Notary bonds are required by law in some states, while in others they are optional. Check with your state’s notary commission to determine if a notary bond is required in your state.
Notary insurance is not required by law, but it is strongly recommended as an important way to protect yourself and your clients.
What should I do if I am sued?
If you are sued for an error or omission in your work as a notary, the first step is to contact your insurance company. They will provide guidance on how to respond to the lawsuit and will handle the legal proceedings on your behalf.
It’s important to cooperate fully with your insurance company and to provide all necessary information and documentation. Failure to cooperate could result in the denial of your claim.
How do I file a claim?
If you need to file a claim against your notary insurance policy, contact your insurance company as soon as possible. They will provide instructions on what information you need to provide and how to submit the claim.
Be sure to provide all relevant information and documentation, including any legal filings or notices you have received. Failure to provide complete and accurate information could result in the denial of your claim.
Can I purchase notary insurance online?
Yes, many insurance companies offer notary insurance policies online. Be sure to research the insurance company thoroughly before purchasing a policy to ensure they are reputable and well-established.
Conclusion
Notary insurance is a crucial way to protect yourself and your clients from the financial consequences of mistakes or errors in your work as a notary public. By carrying notary insurance, you can have peace of mind knowing that you are covered in the event of a claim. Be sure to carefully research your options and choose a policy that provides adequate protection for your needs.
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