A majority of Notaries purchase Errors and Omissions (E&O) insurance because they feel safer with coverage protecting them from potential lawsuits, according to an NNA December 2011 online poll.
When asked their main reason for carrying an E&O policy, 57 percent of Notaries surveyed said it was for protection from possible liability, which can cost thousands of dollars in legal fees and potential penalties.
“In this day and age, how can you not carry insurance?” said Notary Marilyn Long of Oroville, California. “Too many people in this world are ‘lawsuit-happy.’ I won’t notarize without insurance — plain and simple.”
The next most frequent reason given by respondents, at 21 percent, was Notaries who said they carry E&O because their state-required surety bonds only protect document signers in a lawsuit, followed by 11 percent of Notaries who want coverage because they notarize documents involving large amounts of money and property.
Walter Hertz of Toms River, New Jersey, said that he would like to see larger E&O policies made available as additional protection for Notaries who work with high-end transactions. “Most of the loan documents I notarize are for amounts even higher than the top limits of E&O policies,” he said.