What Is Errors & Omissions Insurance? E&O for Notaries Explained

Find out the ins & outs of errors and omissions

When public notaries are purchasing their notary bonds, they are presented with the option to purchase additional errors and omissions insurance. Unlike the surety bond, errors and omissions coverage is not required by the state and is entirely up to the notary.

Although not required, it is highly recommended for all notaries. Continue reading to understand what errors and omissions coverage is before deciding whether or not to purchase coverage with your bond.

What Is Errors & Omissions Coverage?

Errors & Omissions is a type of professional liability insurance that protects notaries from mistakes resulting in financial loss by the customer. If a customer files a claim against a notary bond, errors and omissions insurance will protect the notary’s assets up to the chosen coverage amount.

Without E&O, notaries are personally liable for damages caused by a mistake made while acting as a notary, which is why this coverage is so essential. It is also important to note that errors and omissions does not cover mistakes deemed to be intentional.

Benefits of E&O Coverage for Public Notaries

Although it is cheaper to purchase a bond without E&O, the cost to cover a claim against a notary without it may far outweigh the initial savings.

Errors & omissions insurance protects notaries up to the maximum amount of coverage they have selected, meaning they have zero financial liability so long as the damages are within the limit of coverage.

To minimize out-of-pocket costs, carefully consider the coverage amount when purchasing errors and omissions with a bond.

E&O Example

If a notary purchases a policy capped at $15,000 and the plaintiff is seeking damages of $20,000, the notary will be responsible for just $5,000 of the claim. The other $15,000 is covered by the insurance provider.

Do Surety Bonds Protect Notaries?

A common misconception about surety bonds is that they offer protection for the person who buys the bond, also known as the principal. In reality, surety bonds are meant to protect the obligee requiring the bond from damage caused by the principal.

If someone makes a claim against a notary bond, the surety pays out money to settle that claim. They will then look to the notary to personally reimburse them for all money paid out. This is why including Errors & Omissions coverage is highly recommended when purchasing a notary bond.

If an employer requires someone to become a notary, does their liability insurance cover losses?

In some instances, an employer will have adequate insurance to protect a notary. But this is more of an exception than the norm. To avoid a potential loss, notaries should inquire with their employers as to whether they are covered before foregoing E&O coverage.

Where to Get E&O Insurance

SuretyBonds.com offers multiple errors and omissions coverage options with every notary bond. You can tailor coverage to fit your unique needs. You can also purchase most of our policies instantly online using our secure online portal.

Have questions? Call 1 (800) 308-4358 or select your state to find out more about the notary bond and E&O coverage you need!

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About the Author

Lindsey Jenkins
Lindsey Jenkins is a member of the marketing team at SuretyBonds.com. She writes about new legislation pertaining to the surety bond industry along with other surety bond news.