What Does Errors and Omission Insurance Cover?
Errors and omissions (E&O) insurance is a type of professional liability insurance for service-based professionals and businesses. If a client files a claim regarding negligence, faulty advice or simple paperwork errors, E&O insurance can cover the following costs:
- Damages
- Settlements
- Legal costs
Errors and omissions does not cover the following:
- Bodily injury
- Property damage
- Employment-related disputes
- Criminal acts
Notaries often purchase E&O insurance to protect themselves from legal expenses due to common notarization errors, such as missing seals, dates or signatures.
Is Professional Liability Insurance the Same as Errors and Omissions?
Professional liability insurance protects service providers from financial harm if a client sues them for unsatisfactory work, harmful advice or negligence. E&O is a specific type of liability insurance used in certain industries but offers the same protections.
Professionals, such as estheticians, consultants or architects, use professional liability insurance as it provides coverage for lawsuits regarding negligence, noncompletion or other breaches of client contracts.
Knowledge-based service professionals, such as notaries, real estate agents or accountants use errors and omissions insurance. These businesses have the potential to offer harmful advice, submit incorrect information, or make mistakes on legal documents.
Why Should I Have E&O Insurance as a Notary?
E&O insurance is not required for notaries but is highly recommended as it prevents you from being personally liable for accidental damages such as spelling errors, incorrect dates or missing signatures.
Clients can take legal action if these notarial mistakes lead to financial loss. If you have E&O insurance, you can file a claim to recoup legal fees, court settlements and damages up to the coverage amount you purchase.
How Much Does Errors and Omissions Insurance Cost for Notaries?
SuretyBonds.com offers multiple E&O coverage options with every notary bond. The price varies by state and coverage amount. Visit our notary bond guide to find the right coverage option for you and get a quote today.
What’s the Difference Between Surety Bonds and E&O Insurance?
While SuretyBonds.com offers a bond and E&O insurance package for notaries, it’s important to note the differences between the two.
- A surety bond protects notary clients from intentional notary malpractice and serious mistakes leading to financial damage. Notaries are expected to fully reimburse any claims paid by the surety.
- Errors and omissions insurance protects the notary if accidental and common mistakes are made in the notary process. In this case, the insurance covers the claims and the notary is not expected to reimburse them.
Read “What’s the Difference Between Being Bonded vs Insured” to learn more.
How Do Surety Bonds and E&O Work Together to Protect Notaries?
Having a notary bond and E&O insurance is ideal to protect both you and your clients. This ensures one party does not take advantage of another and that simple mistakes can be compensated. Find the notary bond you need and apply today.
