Why Notaries Should Consider Errors and Omissions Insurance
But as notarial duties become more complex, mistakes can happen. A missed step, clerical error, incorrect certificate, or allegation of improper notarization could lead to financial consequences for a customer. That is why Notary Errors and Omissions Insurance, often called Notary E&O Insurance, is an important protection for commissioned notaries.
What Is Notary Errors and Omissions Insurance?
Notary Errors and Omissions Insurance protects you if you make a mistake while performing a notarial act and that mistake causes your customer to suffer a financial loss.
For example, a notary may be accused of completing a notarization incorrectly, failing to follow the proper procedure, or making an error that affects the validity of a document. Even when a notary acts responsibly, allegations can still arise. E&O Insurance can help provide financial protection if a covered claim is made.
If a notary is sued because of an alleged error or omission, E&O Insurance may help cover the cost of legal defense. Depending on the policy, the insurance company may also assist with finding and hiring an attorney to defend the notary, subject to the terms and limits of the policy.
Your Notary Bond Does Not Protect You
One of the most common misconceptions among notaries is that a notary bond protects the notary. Your bond is designed to protect your customers — not you.
If a bonding company needs to pay a claim because of your mistake, you are typically required to pay the bonding company back. That means the bond may satisfy the customer’s claim, but it does not shield you from financial responsibility.
Notary E&O Insurance works differently. PAN’s Notary E&O Insurance pays your claim first. There is no deductible, and you are not required to pay the insurance company back.
That distinction is important. A bond protects the public. E&O Insurance protects the notary.
Added Protection for Your Employer
Another benefit of PAN’s Notary E&O Insurance is that your employer is also insured under the policy at no additional charge. This can be valuable for notaries who perform notarizations as part of their job duties.
Whether you notarize documents occasionally or frequently, having coverage in place may provide peace of mind for both you and your employer.
Coverage Options Available Through PAN
PAN’s Notary E&O Insurance is available only to PAN members. Coverage options include:
| Amount | Coverage | Cost |
| $30,000 | $30,000 for the claim and an additional $15,000 for legal fees | $60 for four years or $1.25/month for the remainder of your commission |
| $50,000 | $50,000 for the claim and an additional $25,000 for legal fees | $84 for four years or $1.75/month for the remainder of your commission |
| $100,000 | Up to $100,000 to cover both the claim and legal fees | $180 for four years or $3.75/month for the remainder of your commission |
If you are in the process of becoming a notary or renewing your commission, you may add any of the Notary E&O policies to your package.
If you are currently in the middle of your commission, you can still take advantage of PAN’s Notary E&O Insurance. Simply multiply the monthly rate of the policy you choose by the number of months remaining in your commission to determine your cost.
Protect Yourself Before a Mistake Happens
Even the most careful notaries can face questions, complaints, lawsuits, or claims. As notarial responsibilities continue to evolve, E&O Insurance is a practical way to protect yourself from the financial impact of certain mistakes or allegations.
If you are a commissioned notary and interested in joining PAN, become a member today at Membership | PAN
If you are not interested in becoming a PAN member or need limits higher than $100,000, you can still obtain Notary E&O Insurance through PAN’s broker, E. R. Munro and Company.
For more information or to order a policy, please call 800-944-8790.
