What Is Errors & Omissions Insurance?
Because the main responsibility of a notary public is to help prevent legal document fraud, any mistakes, even accidental, can become a legal liability. As a notary, you can be deemed responsible for a client's financial losses due to an alleged notarization error.
Whether you are guilty or not, defending yourself against a claim can become expensive in no time. That's why notary errors and omissions (E&O) insurance exists.
An E&O policy is a specific type of professional liability insurance designed to offer some financial protection for notaries against claims that result in a lawsuit.
Unlike a general liability insurance policy, E&O policies protect against the following job-specific claim scenarios:
- Accidental negligence
- Unintentional errors or omissions in notary services
- Misrepresentation or signature forgery
Protect Yourself for As Little as $1 per Month
Notaries.com offers the most affordable insurance policy options compared to anyone in the insurance industry in North Carolina. Our E&O policies are underwritten by the Travelers Indemnity Company and require no deductible or loss repayment.
Plus, we offer policies for every budget. Insurance premiums start at just $60 for a five-year term. Paying the one-time premium provides coverage for judgments, attorney fees, court costs and settlements up to $100,000.
The insurance coverage level that's best for you depends on your personal needs.
If you're just starting out and not notarizing high-value documents, you might feel comfortable with less than $50,000 of coverage. Established notaries who deal with things like valuable wills should opt for higher coverage to protect themselves from paying massive out-of-pocket legal fees.
Generally, illegal acts, intentional deeds of wrongdoing, criminal activity and bodily injury inflicted by you or your business are not covered. Consider this when choosing a policy.
Can You Afford a Lawsuit?
An E&O policy protects you or your business from a wave of legal fees. Here are two hypothetical examples:
A former client accuses you of making a notarization mistake and threatens you with a lawsuit. You work with a lawyer and agree upon a $10,000 settlement. Between the settlement and the legal fees, you owe $20,000.
Without E&O insurance, you would need to pay that full amount out of pocket. Could you afford to pay for these costs yourself?
This is where insurance shows its value. If you had $25,000 worth of coverage, the policy would've protected you from financial loss by covering the settlement and the legal fees.
The best time to purchase this insurance is before someone files a claim against you. Secure your future as a notary today!
How Do I File a Claim in North Carolina?
If you need to defend yourself in court or pay a settlement, these tips can help:
- Leverage a notary journal to document as much information about the claim made against you or your business. Then, send that information to your E&O provider.
- Contact the claim handler at the insurance company and, if they recommend it, find a lawyer who specializes in liability insurance claims. Do not discuss the case with anyone except for the claim professional and your lawyer. Doing so could lead to unintended admissions or violations of confidentiality that negatively impact your defense and the outcome of the claim.
- Have the insurance company and/or lawyer attempt to reach a settlement outside of court. That way, you avoid paying additional legal defense fees if the case is drawn out.
