Notary E&O Insurance — What You Need and Why It Matters

E&O insurance (also called professional liability insurance) covers claims arising from mistakes, errors, or omissions in your notarial work. Examples: missing a required signature, using the wrong certificate, or failing to properly verify identity. It pays for legal defense and settlements up to your policy limit.

For general notaries: $25,000–$100,000 in coverage is typically sufficient. For loan signing agents: $100,000–$500,000 is recommended, since mortgage documents involve large dollar amounts. Many title companies require LSAs to carry at least $100,000 in E&O coverage.

Notary E&O insurance is surprisingly affordable: $25,000 coverage: approximately $40–$60/year; $100,000 coverage: approximately $65–$100/year; $500,000 coverage: approximately $100–$150/year. The NNA (National Notary Association) offers competitively priced E&O policies with their membership.

Best sources: (1) NNA (National Notary Association) — most popular option, bundled with membership; (2) Notary Bond Warehouse; (3) American Notary Association; (4) Your state notary association; (5) Independent insurance broker. Compare prices and coverage before buying.

Many states require a notary bond, which is different from E&O insurance. A notary bond protects the PUBLIC from your errors; E&O insurance protects YOU. You typically need both: the bond for legal compliance, E&O for your own financial protection. Bonds are cheap ($40–$100 for 4 years).