If you want to become a notary public, you may be asking, do I need notary insurance? Well, it is a good idea. There are different types of insurance to investigate. The two types you should be aware of are Errors and Omissions Insurance and a Notary Bond. Some states require notaries to have a notary bond. But, New York State does not. Let’s outline these two types of notary insurance.
The Notary Bond
Also called a Notary Surety Bond, it is usually purchased from a Surety Bond Company. You may also find this type of bond through many insurance companies. The bond essentially protects the public from potential financial damage. So, as a notary, you perform a wrongful action when executing your service. If that action caused financial harm to the constituent, the bonding company will pay damages to the injured party. The key here is not to assume that you are covered by your employer. The notary bond protects the constituent, not to protect the notary. Since a notary is subject to liability, you should look into Errors and Omissions Insurance.
Errors and Omissions Insurance
Unlike a Notary Bond, Errors and Omissions Insurance protects the notary. So, it is basically personal liability insurance. This insurance covers honest mistakes made by the notary. It also covers you if your signature becomes forged on a document. If you become unjustly named in a legal proceeding, E&O insurance will cover that. This insurance will help you pay your legal fees, and court fees, up to the amount of insurance you purchase.
The important thing is to protect your customers as well as yourself. If you are already a notary and looking for insurance, we recommend visiting Bizinsure.com and seeing what they have to offer. However, there are many insurance companies you can examine.
We write these articles as informational tips for anyone who wants to become a notary public in New York. We specialize in preparing you to pass the New York State Notary Exam. To read more of our articles, or evaluate our notary course, visit our homepage.
Errors and omissions insurance, sometimes called Professional Liability insurance, protects you against claims of negligence. If you are a notary who certifies a lot of documents you may want to consider E&O insurance. It is possible to face a lawsuit even if a claim isn’t legitimate. The insurance can help protect you should a costly legal battle arise.
An E&O policy is extremely clear on what it covers. So, it is important to read your policy carefully and understand the coverage. The insurance will only cover acts performed as a notary. Should you incur liability irrespective of your notarial duties, don’t expect your actions to be covered. It only covers mistakes relative to notarial acts. Again, read and understand what your policy covers.
E&O insurance is there if you make a mistake during the notarial process. But, it will not protect you for malfeasance or any intent to circumvent the law. If you make a mistake deemed intentional, your E&O insurance will not cover you. We discussed malfeasance in our previous blog.
If you decide to register as an e-notary, it is recommended that you get Errors and Omissions Insurance. You are welcome to read our article, Does a New York Notary Have Liability?
What does Errors and Omissions Insurance Cover?
Again, read your policy carefully, and understand it. But, if a customer makes a claim for damages against you, you are covered up to a certain amount. Without insurance you are personally liable for any damages which your mistake caused. The key here is “Mistake.” We all make mistakes. So, at some point you will make a mistake. Should your mistake cause harm to a constituent, E&O insurance will be there for you if you have to go to court.
What does it Cost?
Well, you will need to shop. Prices vary. You can spend anywhere from $20 to $100 a month, or more. However, much depends on how much coverage you deem necessary. The National Notary Association says you can protect yourself for as little as $3 a month in New York.
If you have other questions about becoming a notary public in NY, feel free to read our list of frequently asked questions.
If you want to become a notary public, you may be asking, do I need notary insurance? Well, it is a good idea. There are different types of insurance to investigate. The two types you should be aware of are Errors and Omissions Insurance and a Notary Bond. Some states require notaries to have a notary bond. But, New York State does not. Let’s outline these two types of notary insurance.