In business, legal disputes are a fact of life — and Notaries are often named in lawsuits when problems are found on a notarized document. In our increasingly litigious society it’s crucial for Notaries to know the difference between a surety bond — which protects signers — and E&O policies that guard a Notary’s personal and professional assets from liability. Some people mistakenly assume that state-required surety bonds cover Notaries against financial loss in a lawsuit. But surety bonds only protect signers from loss caused by a Notary’s error, not the Notary. For protection against liability, Notaries must take out an Errors and Omissions (E&O) insurance policy. Unlike surety bonds, E&O insurance does not have to be reimbursed in the case of a claim pay-out. Though best practices are an important safeguard against getting sued, Notaries can sometimes become entangled in lawsuits through no fault of their own — such as when their name is forged by someone else on a document or a seal image is copied and misused without the Notary’s knowledge. An E&O policy keeps the Notary covered in these situations and can also help pay for legal expenses such as hiring an attorney. For more information on obtaining an E&O policy, you can also call (800) US NOTARY (876-6827) or visit us online.