Errors and omissions (also known as E&O) insurance helps protect notaries in Alabama. With an E&O policy, you don't need to pay costly fees if you make notarization mistakes. You're responsible for legal fees or notary bond repayments without an insurance policy. Can you afford to pay these defense costs out of your own pocket?
This type of professional liability insurance covers potential errors like:
Ready to protect yourself and your commission? This page describes why we recommend this type of insurance for all notaries.
A notary public is a person of integrity who acts as an impartial witness and helps combat fraud. Making a mistake while notarizing a document can result in serious financial loss for your client. If a previous customer thinks you notarized something incorrectly and they lost money, they can sue you directly or file a claim against your notary bond.
An E&O policy protects you from the financial burden that can result from a claim or lawsuit. Coverage starts by paying a one-time premium that lasts the entire duration of your commission. After that, expenses related to judgments, settlements, attorney fees and court costs are covered. Coverage limits depend on the policy you select.
Here's a hypothetical example that shows how E&O insurance can help:
A previous client believes you made a notarization error and decides to file a claim against your surety bond. You work with a representative from your bond company and a lawyer to get the case settled out of court.
Your bond provider pays the claimant a $10,000 settlement, and your lawyer charges $10,000 for legal services. Additionally, your standard bond agreement stipulates that you repay the $10,000.
If uninsured, you would owe $20,000 (bond repayment plus legal fees) and need to pay out of your own pocket. But purchasing a policy with $25,000 coverage would ensure you're protected from those expenses.
Get protection for the full term of your Commission.
Now that you understand why it's worth getting liability protection, we're here to help. We have affordable policies underwritten by the Travelers Indemnity Company.
There are options that fit different budgets. Premiums start at only $25 for $25,000 of coverage. All policies are valid for the entire four-year commission term with no deductible or loss repayment.
The Alabama Secretary of State requires bonds to protect the public from financial loss caused by notarization mistakes. They do not protect notaries.
Any legitimate claim filed against your $50,000 bond means the bond provider pays the claimant an agreed-upon amount. Then, you're likely expected to pay that back.
If someone sues you for professional negligence or makes a claim against your bond, these tips can help you take full advantage of your errors and omissions policy:
Our policies provide liability protection for notaries in Alabama. The best time to purchase liability insurance is before someone files a claim against your bond. Secure your future as a notary today!
