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A Guide to Notary Errors and Omissions Insurance

As a professional Notary business, the government sees you as having unlimited liability to the public. In such a position, you want to have the right coverage in case of an error or false accusation. In which case, you will need notary errors and omissions insurance. Without this coverage, you could be sued for any number of errors that harm the signer or persons relying on the note. To avoid severe financial loss, consider this insurance for necessary coverage.

In the case of an error, something that should not have been done, or an omission, critical information is missing; the notary insurance policy would cover you regardless of what the issue is. You are not, however, covered for intentional mistakes or errors. Whether a mistake or intentional, your business will end up owing the clients who were financially harmed by the actions.

Minor slip ups such as notarial seal problems or failure to identify the signer can make you liable for lawsuit.  Even if you are careful, and don’t make a single mistake, clients can still allege that you made an error. Because this is the case, even though you believe your company to have an impeccable track record, having the right insurance is invaluable. False allegations will still cost your company thousands of dollars.  

Consider coverage limits while in the process of deciding which company to work with. Your insurance will cover the claim, court costs, and defense fees.  Some companies cover up to $100,000. The premium is also important. While you will not be responsible for any deductable cost, which differs from car or health insurance, you are responsible for the premium at the time of purchase.

When deciding what your limits need to be, you should consider the notary bonds you’ve issued to your clients. Because this covers them in any instance of financial harm, it’s important that you cover that amount at the very least. Because they are covered, and you are not, your business can be in a position to lose a significant amount of money.

Some companies will offer prevention courses, as well. This is a feature that could be important down the line with newer employees. Prevention is the first step to avoiding costly lawsuits, and getting the necessary information is crucial to averting the crisis. Courses include what to do when the situation arises and how to prevent a claim in the first place. While everyone makes mistakes, it is critical that human error is not a factor in this field.

As a notary, purchasing notary error and omissions insurance will be critical to you making it through an expensive lawsuit. Unfortunately, even false allegations can cause you costly courtroom time and defense fees. Because this is left to the discretion of clients, being covered can help keep your business afloat. Don’t let yourself get caught without insurance causing you to claim bankruptcy. When you’re ready to decide, please browse our approved list of vendors, brought to you by Business.com for your convenience.