Many business owners frequently ask questions regarding various types of insurance policies. Even within specific categories, business owners may be overwhelmed by the sheer volume of information. However, it is imperative for them to have at least a basic understanding of insurance policies their business may need. As a Notary business owner, you may be wondering whether Notary errors and omissions insurance is right for your business. Read on to discover the answers to frequently asked questions regarding Notary errors and omissions insurance.
What Does it Cover?
The first question many people ask about Notary E&O insurance is what exactly is covered. The insurance protects the personal and professional assets of a Notary in the event they make a mistake resulting in financial loss. In addition, it will cover your Notary if they unintentionally break the law, are named in a lawsuit, or their signature is forged. Your business’s general liability insurance will not protect your Notary from liability regarding mistakes in their notarial acts. Such acts include their duties as a Notary, verifying documents such as deeds and wills. Surely, this policy will cover your online Notary services business or traditional brick-and -mortar company in the event of any errors.
How Much Insurance is Needed?
Next, business owners commonly ask about how much coverage is needed for Notary insurance. The answer to this question depends on your business as well as your budget. Notary E&O insurance comes in three different types of coverage. Regular Notary insurance policies can cover up to $100,000. Conversely, high-limit policies can cover up to $2 million. In addition, signing agent E&O insurance will cover any gaps in the two traditional policies. These gaps can include mistakes such as missed initials, unnotarized signatures, improper dates, and missing time-sensitive deadlines. Use this information to decide how much insurance is needed for your business.
How Much Does It Cost?
A third frequently asked question regarding Notary errors and omissions insurance is the cost of such a policy. Notary terms and laws regarding them vary from state to state. However, it will likely be a startup cost less than $100. It is recommended to purchase coverage for an entire term at once. For example, in New Jersey, a regular Notary E&O policy covering up to $25,000 will cost around $21 per year. A five year (the full term in NJ) policy covering the same amount will cost around $104. These prices will vary from state to state, but will remain under $40 per year for policies covering similar amounts. Do your homework to find best policy and payment plan for your business. This way, you will be able to determine how much it costs for Notary errors and omissions insurance.
How To Obtain Notary E&O Insurance
Subsequently, business owners also tend to ask how to obtain Notary insurance. All you need to do is contact an insurance provider or the National Notary Association. This can be done either online or by phone. Both the speed and ease of this process will allow you to focus more on other aspects of running your business smoothly. Also worth noting is that if your Notary is commissioned in multiple states, they still only need one policy for complete coverage. The simplicity of obtaining such insurance will go a long way in keeping your business and Notary protected.
What’s The Difference Between E&O Insurance And A Surety Bond?
Finally, business owners may wonder how to differentiate between Notary E&O insurance and a surety bond. Unlike E&O insurance, Notary surety bonds are required by law. They are designed to protect the public from financial harm resulting from Notary errors. That’s the difference, that surety bonds protect the public, not your Notary. If a claim is made against a surety bond, the Notary would be liable for it as well as any additional costs above the bond’s limit. However, this is what the Notary E&O insurance is for. Your Notary’s policy will protect them from surety bond losses they would otherwise have to pay.
The public tends to have many questions about notary errors and omissions insurance. The first being what does it cover, and its answer being that it covers Notaries in the event they make a mistake resulting in financial damage. Business owners also wonder how much coverage is needed, and that answer depends on your business and budget. Another question on business owners’ minds regards the cost, with most policies in most states costing under $40 per year. A fourth question involves how to obtain such insurance, with the answer being to contact the National Notary Association or general insurance provider. Finally, business owners also tend to ask about the differences between Notary E&O insurance and surety bonds, which protect the public from Notary mistakes. Surely, consider the information above when deciding if Notary errors and omissions insurance is right for your business.