In plain English
A bond protects the public; E&O can protect the notary. Requirements vary by state and many signing companies require E&O.
Read the policy limits and exclusions.
Why it matters
A single wrong date or missed signature can mean redrawing documents, rescheduling and possible claims against the notary. E&O coverage can help with the cost, but only within the policy terms.
Many signing services and title companies will not assign work without proof of coverage, so lacking it can limit the work a notary gets. Coverage amounts and terms differ widely, so compare what clients ask for with what a policy actually pays.
Worked example
A signing agent buys an E&O policy before taking loan signings so a clerical error does not become a personal loss.
What to do
- Check what your state requires and what clients ask for.
- Compare policy limits, deductibles and exclusions.
- Read whether defense costs are included or extra.
- Keep proof of coverage ready to send to clients.
- Renew before the policy lapses.
Common mistakes
- Assuming a bond protects the notary leaves them personally exposed for errors.
- Letting the policy lapse between renewals can leave a gap if a claim arises later.
- Not reading exclusions can lead to a surprise when a claim is denied.
Not the same as: Notary bond
E&O insurance can protect the notary against claims from mistakes, while a bond protects the public and may require the notary to repay the surety. See Notary bond.
Go deeper
- Notary Bond vs Errors and Omissions Insurance: These two products are often confused. Learn what a notary bond protects, what E&O insurance protects, what neither covers, and how to choose coverage sensibly.
- Signing Agent E&O Insurance: What It Covers and Why: What errors and omissions insurance is for loan signing agents, how it differs from a notary bond, what it usually excludes, and what clients may ask to see.
Related terms
- Form I-9: The federal form used to verify an employee's identity and work authorization.
- Guardian or conservator: A person a court appoints to make decisions or manage money for someone who cannot.
- Deed: A document that transfers ownership of real property.
Common questions
What are errors and omissions?
Insurance that may cover a notary's mistakes, separate from a bond.
Can you give an example of errors and omissions?
A signing agent buys an E&O policy before taking loan signings so a clerical error does not become a personal loss.
Does E&O insurance cover intentional misconduct?
Policies generally exclude intentional wrongdoing. Read the policy for specifics.
How much E&O coverage should a notary carry?
There is no single answer. Check client requirements and talk to an insurance agent about current options.
General information, not legal advice. Rules vary by state and change; check with your state's commissioning office.