As a notary public, you have the important responsibility of verifying the authenticity of important documents and transactions. While you most likely take great care to ensure that you perform your duties with the utmost professionalism, there is always the possibility that something can go wrong. In the event that a mistake or error occurs, notary insurance can provide important protection for both you and your clients.
Who Needs Notary Insurance?
If you are a notary public, it is important to consider obtaining notary insurance. This type of insurance is designed to provide protection in the event that you are sued for errors or omissions related to your duties as a notary. While not all states require notaries to carry insurance, it is still a wise investment to consider.
Types of Insurance Needed by Notaries
There are several types of insurance that notaries may need to consider, depending on the scope of their services and the risks associated with their work. Here are a few common types of insurance for notaries:
- Errors and omissions insurance: This type of insurance, also known as professional liability insurance, provides coverage in the event that a client alleges that you made an error or omission in the performance of your notarial duties. This can include situations where you failed to properly identify a signer, or where you made a mistake in the notarization process.
- General liability insurance: This type of insurance provides coverage for bodily injury or property damage that may occur during the course of your notarial duties. For example, if a client were to trip and fall in your office during a notarization appointment, general liability insurance could help cover the costs of any resulting medical expenses or legal claims.
- Cyber liability insurance: Notaries who store client information digitally may be at risk of cyberattacks or data breaches. Cyber liability insurance can provide coverage for expenses related to data recovery, credit monitoring, and other costs associated with a cyber incident.
Notary Risks and Exposures
While notaries may take great care to perform their duties accurately and ethically, there are still a number of risks and exposures associated with the job. Some of these risks include:
- Improper identification of signers: Notaries must be diligent in verifying the identity of signers to ensure that they are authorized to sign the document in question. Failure to properly identify a signer can result in legal and financial consequences.
- Errors in notarization: Mistakes in the notarization process, such as failing to properly complete the notarial certificate, can render the document invalid and result in legal action.
- Liability for unauthorized practice of law: Notaries must be careful to avoid giving legal advice or engaging in activities that could be construed as the unauthorized practice of law. Failure to do so can result in legal and financial consequences.
Commercial Insurance and Business Industry Classification
- SIC CODE: 7389 Business Services, Not Elsewhere Classified
- NAICS CODE: 541120 Offices of Notaries
- Suggested Workers Compensation Code(s): 8810 Clerical Office Employees NOC
Notary Insurance – The Bottom Line
While notaries may take great care to perform their duties accurately and ethically, mistakes can still happen. Notary insurance can provide important protection in the event that a client alleges errors or omissions in the performance of your notarial duties. By obtaining the right types of insurance, notaries can protect themselves and their clients from the financial and legal consequences of unexpected incidents. As with any insurance policy, it is important to carefully review the terms and conditions of the policy and to obtain coverage that meets your specific needs and risks.