7.3 Errors and Omissions (E&O) Insurance
Key Takeaways
- E&O insurance protects the NOTARY from financial liability for honest mistakes
- E&O insurance is separate from and complementary to the surety bond
- Most states do not require E&O insurance, but it is highly recommended for active notaries
- E&O policies typically cover legal defense costs and settlements arising from notarial errors
- E&O insurance does NOT cover intentional misconduct, fraud, or criminal acts by the notary
Last updated: March 2026
Errors and Omissions (E&O) Insurance
Errors and Omissions (E&O) insurance is a professional liability insurance policy that protects the notary from financial loss resulting from honest mistakes made during the performance of notarial duties.
What E&O Insurance Covers
| Coverage | Examples |
|---|---|
| Legal defense costs | Attorney fees if you're sued for a notarial error |
| Settlements | Payments to resolve claims out of court |
| Court judgments | Damages awarded if a court finds you liable |
| Errors in procedure | Incorrectly completing a certificate, misidentifying a signer |
| Omissions | Failing to complete a required step in the notarization |
What E&O Insurance Does NOT Cover
| Exclusion | Explanation |
|---|---|
| Intentional misconduct | Fraud, forgery, knowing violations |
| Criminal acts | Any illegal activity by the notary |
| UPL (unauthorized practice of law) | Practicing law without a license |
| Dishonesty | Knowingly false certifications |
| Pre-existing claims | Claims arising before the policy was purchased |
E&O vs. Surety Bond: Complete Picture
| Scenario | Bond Covers? | E&O Covers? |
|---|---|---|
| Notary mistakenly identifies the wrong person | Yes (if public harmed) | Yes (notary's defense/settlement) |
| Notary intentionally participates in fraud | Yes (public harmed) | No (intentional misconduct) |
| Notary completes wrong certificate type | Possibly | Yes (honest error) |
| Notary is sued but did nothing wrong | No (no public harm) | Yes (legal defense costs) |
Together, the bond and E&O insurance provide comprehensive protection: the bond protects the public, and E&O insurance protects the notary.
Who Should Get E&O Insurance?
While not required in most states, E&O insurance is strongly recommended for:
- Notary Signing Agents — They handle high-value loan documents where errors can be costly
- Mobile notaries — They perform many notarizations with higher error exposure
- High-volume notaries — More transactions = more opportunities for mistakes
- Any notary who wants peace of mind — Even one lawsuit can be financially devastating
Cost
E&O insurance is relatively affordable:
- Typical cost: $30 to $100 per year
- Coverage amounts: Typically $25,000 to $100,000 per occurrence
- Available from: NNA, American Society of Notaries, and private insurers
On the Exam
E&O insurance questions typically focus on:
- Protects the NOTARY (vs. bond which protects the public)
- Covers honest mistakes — not intentional misconduct
- Optional in most states but highly recommended
- Separate from the surety bond — they complement each other
- Does NOT cover fraud or criminal activity
Test Your Knowledge
An E&O insurance policy would cover a notary who:
A
B
C
D