As a notary public offering professional advice or services, the risk of mistakes is always present. Even with the utmost care, errors can occur, and if a client sues, those mistakes can cost you. Court costs, attorney fees, and other legal expenses quickly add up, crippling your ability to effectively run your business. That’s where errors and omissions insurance (E&O insurance) comes in. It protects you from the financial fallout of claims made against your business.
Whether it's a professional negligence claim or a client seeking compensation for financial loss due to errors, this coverage is essential. Without it, you’re exposed to costly legal battles that can drain your resources. Why do I need errors and omissions insurance? Because it helps cover the unexpected.
What Exactly Is Errors & Omissions Insurance?
Errors and omissions insurance is a type of business insurance designed to cover claims arising from mistakes or omissions made during professional services. Let’s say you offer professional advice to a client, and they claim that your advice led to financial loss. E&O insurance helps cover the legal fees, defense costs, and any settlement or judgment awarded to the client. The insurance coverage extends to more than just financial losses. It covers claims of professional negligence, missed deadlines, or failure to deliver promised services. This insurance protects healthcare professionals, small businesses, and anyone who provides a professional service. General liability coverage won’t protect you in these cases, but an omissions insurance policy can. The limits of this coverage vary depending on your industry, but whether you’re a notary or run a small business, having E&O insurance in place ensures you’re covered in case of a claim.
Benefits of Getting E&O Insurance
As a notary public, having errors and omissions insurance (E&O insurance) is vital for safeguarding your business from the unexpected. Providing professional services comes with risks; even the most careful notaries can face legal claims. E&O insurance helps cover legal fees, defense costs, and settlements arising from mistakes or omissions. Investing in this insurance offers peace of mind and financial security, allowing you to focus on your clients confidently. Here are the key benefits of errors and omissions insurance for notary publics:
- Protection from Lawsuits: Covers claims related to notary errors, including legal fees and court costs, so you don’t have to pay out of pocket.
- Financial Security: Helps cover defense costs, attorney fees, and settlements if a client sues your business for a mistake.
- Comprehensive Coverage: Extends protection beyond what a notary bond offers, covering professional negligence and omissions.
- Reputation Protection: Preserves your professional reputation by ensuring you can defend against lawsuits without financial strain.
- Peace of Mind: Knowing that your business is protected allows you to confidently offer professional advice and services without the fear of potential risks.
How Much Coverage Do You Need?
Determining how much errors and omissions insurance (E&O insurance) a notary public needs depends on the level of risk associated with your services and the clients you work with. How much insurance varies depending on a case-by-case basis. Different states offer different coverage limits, and finding the option that works best for your needs and makes you feel comfortable is of the utmost importance. The coverages in Pennsylvania and New Jersey cover the same types of claims, however, the premiums are different.
Is E&O Insurance the Same Thing as a Notary Bond?
Errors and omissions insurance and a notary bond are not the same thing. A notary bond protects the public from any mistakes or misconduct a notary might make. If a notary commits an error that causes financial loss to a client, the notary bond pays the client. However, the notary must repay the bond amount.
On the other hand, E&O insurance protects the notary’s business from legal claims related to errors made during the course of their professional service. While a notary bond is required by law in many states, E&O insurance is optional but highly recommended. It covers legal fees, defense costs, and settlements without requiring repayment. In short, while both protect against errors, omissions insurance offers more comprehensive protection for your business. If a client sues, having an E&O policy in place ensures your business isn’t left paying out of pocket for attorney fees or other legal costs.
Get Your Errors & Omissions Insurance Policy Today
Investing in errors and omissions insurance is one of the smartest decisions a notary public can make. Mistakes happen, even when you’re diligent, and clients may hold you accountable for any perceived errors. Whether it's a small oversight or a more significant issue, the costs can add up fast—court costs, attorney fees, and legal expenses can overwhelm a small business. Having errors and omissions insurance in place helps cover those unexpected financial burdens, protecting your business and personal assets.
E&O insurance ensures that you have the coverage needed to defend your reputation and livelihood if a client sues for notary errors. It’s not just about safeguarding against lawsuits—it’s about securing your future and continuing to provide trusted services to your clients confidently. Don’t let a simple mistake become a financial disaster; invest in errors and omissions insurance and give your business the protection it deserves.