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The best time to get insurance is when you are first starting your notary business. Errors and Omissions (E&O) insurance is sometimes referred to as Professional Liability insurance which is needed for any business that provides a service for a fee. E&O insurance will protect your notary business should you make a mistake or omission while notarizing or against claims of unsatisfactory work and any negligent claims. It can also cover your court or settlement cost. If you do not perform the service correctly or do not deliver your documents on time, the results could cost your clients.

E&O Insurance is not required by law, but most companies will require you to have this type of insurance before they start working with you because it reduces your risk and avoids the financial loss of a potential lawsuit. The amount of coverage you will need will vary based on your business needs however some companies will require you have at least $25,000 of coverage which is the SPW (Signing Professionals Workgroup) standard recommendation. If you are performing Notary Signing Agent work, you may be required to carry between $100,000 to 1 million in coverage.

When shopping for your E&O insurance policy you should consider your exposure, risk, and know what will be covered under the policy. Your E&O insurance policy will not cover such things as intentional misconduct or harm, illegal activities, employee injuries, fee disputes or lawsuits, Bodily injury, and property damage. Do your research on several insurance companies and make sure you don’t buy a generic policy you will need to negotiate the terms and get the correct wording on your policy that should be specifically designed to protect notary signing agents. The cost for the E&O insurance will depend on several factors like the type of business, the state you live in, number of employees, E&O claim history, coverage amount, and the rates offered by the different insurance companies.

Has your notary business grows, pay attention that all the services you offer are covered by your E&O policy.