E & O Insurance & What You Need To Know

Insurance is needed in almost all cases such as cars homes and homes and so much more to cover the safety of lives and properties. With E & O coverage for  Mobile Notaries this is especially important and here is what you should know about it. Working as a notary this commission is your responsibility and all acts you perform is on you. Your title does not matter when is falls in this category. Whether you are a notary or a signing agent they both hold the same rules and regulations as far as making sure you know the laws of what should be legally signed and notorized.  Although e&o Insurance in designed to protect you it must be understand how it works.

Most companies won’t take your service on if you don’t have at least $100,000 Insurance.This is just enough to protect them in case you make mistake when you when they send you out on jobs. This policy protects you in case you made a mistake and they want to pull up charges against you for the mistake you made. If you do not have this insurance you will end up having to hire an attorney and with their legal expenses it may cost you into the thousands depending on how much damage was done due to you mistake in oppose to the fraction of the amount you can pay for an early coverage. Without this you would have to pay all of your legal expenses to the attorney along with the judgment and settlement.You may have not done anything wrong but the fact that a person or a company feel that you did, could take you through the process which could cost you way more than it would if you had the insurance.

So what does E & O cover? I never know the reason make unintentional errors or omissions this insurance covers that. it also covers the claim amount Atmos state attorneys usually charge when it com. his insurance is  much more affordable than regular health insurance.

Having E&O protection does not stop a person from committing  fraudulent and intentional errors if hey choose to. Note that is these charges are found to be guilty by the accuser, the plaintive, the accuser will have their due Diligence and their insurance will be hit probably making it hard for them to get insurance again possibly having their license revoked because of intentional  fraudulent Act which is against the law.just like driving a car having insurance is so comforting knowing that if an accident occur you are protected and can continue operating your business without a problem.I encourage all of my notaries and signing agents to please make sure you are insured while you are working in this position for your protection and the protection of the clients you were working  for.

I am very sure that a lot of signing companies insist that you have insurance in order to work for them so you should insist that you have insurance to work for yourself as a mobile notary signing agent if you are marketing yourself out here as one. E&O policies for Notaries only cover claims involving notarial acts, as Jan Tatangelo, a former California Notary Signing Agent, discovered.

According to Vicki Gardner, Associate Editor, NNA: A few years ago, Tatangelo polarized a power of attorney for an elderly man, and the notarization was performed correctly. When the man later complained to her that he felt pressured to sign the power of attorney, she contacted the police. Relatives of the man later sued Jan for defamation for calling the police. Because Notary E&O insurance excludes coverage for slander and libel, Jan’s E&O insurance did not cover her substantial legal costs defending against the charges of defamation. Although the lawsuit was later ruled bogus, she was unable to recover any damages and was out-of-pocket $11,000 for attorney fees.

For this reason, Notaries who are small business owners may also want to consider carrying other insurance to protect against these other exposures. In an earlier interview with the NWA, Elizabeth Milo, Senior Executive Counsel of the National Federation of Independent Businesses Small Business Legal Center, recommended that Notary entrepreneurs work with a good insurance broker to make sure they have the right type and amount of insurance.

“Liability is a huge concern in today’s climate,” Milito said. “It’s critically important to maintain adequate insurance. It will protect you if an issue escalates to legal action.”If there is a claim against me, what happens? How much E&O should a mobile or self-employed Notary carry?

This is an individual decision, said Anderson. At the minimum, a Notary should have enough to cover the cost of their surety bond if a bond is required by state law and about $10,000 over that amount for extra expenses. If the Notary has liquid assets such as a home the exposure could be much greater. In determining the right amount of coverage, ask yourself:

• What are my assets?

• How comfortable am I with risk?

• How much premium can I afford?

Signing Agent Walter Hertz of Toms River, New Jersey, handles large loan closings, most of which are $750,000 or higher. “I feel that a Notary that handles this type of transaction should carry at least $100,000,” he said.

If my employer carries E&O insurance for me, am I covered for everything, or just on the notarizations I perform for the company?

Anderson recommends talking to your boss to get a full understanding of what the company policy covers. Generally, if the employer policy covers notarial acts (not all do), then it will only cover acts performed by the Notary during the scope of employment. One employer’s policy the NNA reviewed was found to cover only documents prepared in-house. Documents originating outside the company were excluded.

It also might be helpful to ask to review your company’s E&O policy if you have any questions and to make sure you understand the extent of coverage or exclusions.

If you also notarize outside of work, or you are planning to leave your job, you should consider obtaining an individual E&O policy. While company policies will only cover you on the job, individual policies will cover you 24/7/365.

Am I still covered if I stop being a Notary?

It depends on the type of policy that covers you. Anderson explained that there are two types of E&O policies: occurrence-based and claims-made.

With an occurrence-based policy, the insurance will protect you if the policy was in force at the time the notarization was performed. That’s true even if you leave your employment, stop being a Notary or no longer have the policy. Typically, those policies are for amounts up to $100,000.

Claims-made policies cover you only if the claim itself is made while you have the policy. Once you stop paying the premiums, you cease to be covered. Since a claim or lawsuit can happen years after the act giving rise to the claim, cancelling a claims-made policy when one ceases to be a Notary is risky. These policies generally are for amounts over $100,000, and you can purchase a tail policy for a smaller premium that will extend your coverage.

What does E&O coverage cost and how do I get it?

Premiums vary by state based on the amount of coverage and the term of the policy. You can contact any insurance agent or broker licensed to sell property and casualty polices.

The NNA also offers a variety of options to fit your needs and budget. There are no deductibles and no repayment of claims up to the limit you select.