Three Areas Notary E & O Protect

Notary publics are a vital part of life guaranteeing that the people who signed the documents are the people who should sign those documents

. Notaries are the first line of defense against fraudulent transactions, documents and attempts to steal hundreds of thousands of dollars from innocent people and businesses. Notary e&o insurance provides protection for these hard-working people. This insurance protects against mistakes, negligence and unintentional omissions. There is three areas each notary should be concerned about having adequate coverage. These include documents concerning real estate, lives and protecting their information.

Notaries are often used when real estate is refinanced, purchased or sold. These professionals are licensed by the state and obligated to take certain action before fixing their seal and signature to a document. This requires verifying the identification of the people signing the documents. Real estate transactions are worth hundreds of thousands of dollars; fraudulent identification can cost a lender, buyer or seller a great deal of money and damages. Failing to fill out the documents correctly can hold up financial transactions and increase costs to those involved. Errors and omissions insurance protect the notary in these events.

People turn to these professionals to acknowledge signatures on Wills, Trusts and health care directives. These documents disburse property and money or allow someone else to make legal decisions for another person. Most states require notaries to determine the party signing the documents understands what they are signing and have the capability to sign. In addition, the notary must verify the identification by the rules set forth under the state. Mistakes made in this area will often involve attorneys and lawsuits; the costs are very high. Having a notary e&o insurance policy protects the notary from legal fees and awards by the court.

The third place notaries have risk is in the Notary Journals they keep. State law requires notaries to use a special journal and keep records of every signing done. This information includes drivers license numbers, birth dates, full names and addresses as well as signatures. Sometimes this information includes Social Security numbers. If someone accesses this information unlawfully and uses it illegally, the notary is held liable.

Every notary public should have an errors and omissions insurance policy covering at least the average price of real estate transactions the notary handles. Insurance premiums are cheap compared to the cost of defending a lawsuit. The judgments awarded innocent people harmed by real estate transactions or fraudulent wills or trusts are very high. A notary public may be an innocent bystander who was tricked into participating. Part of the damages may be assessed against the notary anyway. This insurance policy provides a competent attorney to handle the lawsuit and will cover damages up to the policy limits.

by: Bob Roberts

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