What does a notary do?
A Notary, or Public Notary, is a state-appointed official responsible for ensuring the proper execution of legal documents and transactions. Their primary role is to prevent fraud and confirm the authenticity of signatures and documents. Common notary duties include:
- Verifying the identity of signers
- Confirming a signer’s willingness and mental capacity
- Serving as an impartial witness for legal documents such as wills, deeds, and contracts
- Administering oaths and affirmations
- Certifying and attesting to documents and statements
Challenges Public Notaries Face
Professionals in law, real estate, banking, mortgage, and insurance industries often require notary services. Individuals may also need notarization for personal documents like birth, marriage, divorce, or death certificates.
Despite serving to protect the public, notaries can be held liable for errors or fraudulent acts during the notarization process. Mistakes due to oversight or negligence can lead to legal claims or financial damage to clients. In some cases, notaries may face lawsuits for misconduct or failure to follow legal procedures.
To reduce risk, notary businesses are encouraged to carry Commercial Insurance and secure a Notary Public Surety Bond, which are often bundled together.
Notary Business Insurance
Given the potential for civil or criminal claims, it’s vital for notaries to have insurance protection to cover legal defense and liability.
Types of Policies Available
Notaries must consider both liability and property risks that could affect their business and reputation. Key insurance options include:
Professional Liability Insurance for Notaries
Also known as Errors & Omissions (E&O) insurance, this policy protects notaries from lawsuits related to mistakes or omissions made during notarization. It helps cover costs such as:
- Claims involving unintentional violations of notary law
- Legal defense, court fees, settlements, and judgments
- Protection against unfounded or frivolous lawsuits
Some policies also include coverage for personal injury claims like libel or slander.
Business Owners Policy
A Business Owners Policy (BOP) is suitable for small notary businesses. It typically combines General Liability and Business Property coverage, and may include Business Interruption insurance.
Cyber Liability
Notaries often handle sensitive personal information. A data breach could expose clients to identity theft and financial loss. Cyber Liability insurance helps cover costs related to data breaches and online fraud, especially for those offering remote online notarizations (RONs), which face higher cybersecurity risks.
Notary Bonds & Insurance
A notary surety bond provides a financial guarantee that the notary will perform duties lawfully. It protects the public and clients from financial losses caused by misconduct or negligence.
Frequently Asked Questions
Do all notaries need insurance?
Insurance is not always required by law, but it is strongly recommended to protect against liability and financial loss from mistakes or legal claims.
What is the difference between a notary bond and E&O insurance?
A notary bond protects the public, while E&O insurance protects the notary personally from the cost of legal defense and settlements.
Is cyber insurance necessary for notaries?
If you handle client data or offer remote notarizations, cyber insurance adds important protection against data breaches and cyberattacks.
Can a notary be sued personally?
Yes. If a notary is found negligent or commits an error, they can be held personally liable unless they have insurance coverage.
How can I get a quote for notary insurance?
You can quickly get a quote online by visiting our insurance quote page.
Still have questions? Talk to a local insurance expert.