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Notaries At Risk: What Claims Statistics Say

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.

Notary Errors and Omissions Insurance Infographic

​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.

Related Articles:

Important FAQs About Notary E&O Insurance

Avoid Common Notary Certificate Mistakes

Hotline Tip: The Difference Between A Surety Bond and E&O Insurance

 

4 Comments

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Fermin Marengo

05 Oct 2015

As I see it Notaries are doing the hard work and the mortgage banks, the lawyers and the realtors are getting the big bucks, the prime meat while the Notaries get the bones. That is why I do not do notarial work.

John Schwirtz

05 Oct 2015

What are the loss ratios for Insurers E&O lines? Rather low, I'm sure. They pay out on very few claims. There's a reason a careful NSA doesn't sign up for E&O: it's worthless.

Jerry Lucas

07 Oct 2015

Mobile notaries also have the risk of having wrong or inadequate motor vehicle insurance. Rushing to appointments due to late arrival of documents increases risk of a car accident. Some notaries advertise courier services but do not have courier coverage on a personal auto policy. In addition to discussing E&O insurance, some tips on proper business and auto insurance coverage would be useful.

David Helman

10 Oct 2015

I'd be very curious to see what kinds of issues were the basis of most claims. Sure, you should be careful and follow best practices for all aspects of what you do, but it be good to see what kind of claims issues are raised more often.

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