Notary Public Underwriters Blog
Difference Between a Notary Public Bond & Notary Public Errors & Omissions
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- Published: July 8, 2022
updated: 07/08/2022
The Notary Bond and Notary Errors & Omissions Insurance are both important for Notaries. Both offer protection. Both have term lengths. So, what’s the difference?
While there are a few similarities between a Notary Bond and Notary Errors & Omissions Insurance, they are actually vastly different. These distinctions are crucial for Notaries to understand.
First, let’s discuss Notary liability. The public counts on Notaries to perform their duties properly. By making an error on a notarization, a Notary could be responsible for a multi-million dollar transaction being voided, or cause someone to lose their property. As a result, a court could find the Notary liable for the loss and enter a judgment against the Notary.
A Notary Bond protects the public from any wrongdoing on the part of the notary. The key phrase being “protects the public”. While a Notary Bond will pay out for damages (up to the policy limit), the Notary is responsible for paying back the surety company for the loss. Furthermore, the Notary Bond in no way protects the Notary from legal liability. The wronged party can still come after the Notary for further compensation. If found guilty, the Notary would be responsible for the amount determined by the court and legal fees. If found innocent, the Notary would still need to cover their legal fees. This is where Notary Errors & Omissions Insurance comes in.
Notary Errors & Omissions Insurance protects the Notary from financial responsibility (up to the policy limit). While a Notary Bond only serves the public, a Notary E&O policy will safeguard the Notary from costs associated with a claim due to the Notary’s negligence, mistakes, or failure to take proper action in the performance of notarial duties*. Even if the Notary did nothing wrong they can still be named in a lawsuit and incur legal fees. With a Notary E&O policy, the Notary is not responsible for a deductible, and unlike the bond, they are not asked to pay any distributed funds back. When choosing a policy limit, it’s important to keep in mind that the Notary would be held liable for any court costs and attorney fees that exceed the policy limit.
To summarize, it is essential to have both a Notary Bond and a Notary Errors & Omissions Insurance policy to fully protect yourself from financial liability due to unintentional mistakes.
Explore our website for more information on Notary Bonds and Notary Errors & Omissions Insurance. If you have any questions, please contact our Customer Care Team at 800-821-0831. We’d love to assist you!
*Unlike the Notary Bond, Notary Errors & Omissions Insurance does not cover unlawful behavior or fraud.
This post covers the difference between basic Notary Bonds and Notary Errors & Omissions Insurance. For more information regarding Signing Agent activities and insurance, please visit https://notarypublicunderwriters.com/signing-agent-insurance.