Forty six percent of Notaries who responded to our summer poll reported they do not carry Errors & Omissions (E&O) insurance, leaving nearly half of the Notary community vulnerable to costly lawsuits.
Several stated they do not have E&O coverage because they were unaware liability protection was important, their employers didn’t feel E&O insurance was necessary, or they felt they didn’t need to protect themselves against lawsuits.
“Given today’s atmosphere where people are ready to sue for anything and everything, I think Notaries should have protection,” said Lynette Bell of New York City, another survey participant.
E&O insurance protects the Notary from financial losses from lawsuits up to the policy limit, as opposed to surety bonds (required for Notaries in some states) which protect the signer from financial damages caused by an improper notarization. Additionally, surety bonds require the Notary pay back the claim.
The poll also revealed that only 17 percent of respondents said their employers have an official policy to ensure that their notarizations are properly performed and legal.
Official policies help organizations maximize efficiencies while mitigating its risks. More on this topic can be found in a recently published NNA white paper titled, “An Employer’s Guide To Managing Its Notary Workforce.”