After talking to notaries, there seems to be confusion with what E&O really is. A lot of mobile notaries say that it’s not a state requirement and they have a bond so they don’t need it. This is where they are wrong.
One of the most things that notaries say is that they have a bond so why would they purchase E&O insurance. Well, a bond protects the signer if there is any errors or omissions, not the notary. If a claim is filed towards the bond, most of the time that surety company will go back to the Notary for reimbursement. E&O insurance is to protect the mobile notary. If a mistake is made or something is not signed correctly and it costs the title company or the signer monetary loss, they will go after the notary.
So, if a mobile notary does not have this coverage, they could be sued for the entire financial loss. E&O will cover any loss up to the amount of coverage without any deductibles. This also includes coverage of legal defense up to your coverage amount.
Most state statutes affirm that a notary has UNLIMITED FINANCIAL LIABILITY to the public harmed by an error or omission done by the notary. In most states you can get a minimum of $25,000 of coverage for around $25 for the year if not less. So if you’re a notary, make sure you protect yourself by having E&O coverage.
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