A review of hundreds of closed claims in the NNA’s insurance and bond program revealed that many Notaries revealed that many Notaries are at risk because they carry out their duties with little or no protection for themselves — as the infographic below shows.
Whether you are a new or renewing Notary, the vast majority of claims are the result of actions performed early in your commission or bond period (60 percent in the first year; 80 percent in the first two years).
What A Claim Will Cost You
Yet on average, claims are not filed for almost two years after the questioned notarization took place. If a payout is made, the average amount equals 43 percent of the bond or policy. If you have a $10,000 bond, that would be $4,300. If you have errors & omissions insurance, the policy could pay that.
However, 80 percent of the Notaries who suffer a payout from their surety bond do not have E&O insurance. So they face having to reimburse their bond company for the total amount of the payout.
And, approximately only one out of every three Notaries who purchase E&O policies maintains their coverage for the duration of their commission.
In the coming months, the Notary Bulletin will be posting a series of articles and videos intended to help you reduce the chances of having a claim filed against you.
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Important FAQs About Notary E&O Insurance
Avoid Common Notary Certificate Mistakes
Hotline Tip: The Difference Between A Surety Bond and E&O Insurance