Errors and Omissions Insurance
Errors and Omissions Insurance, otherwise known as E&O Insurance, is optional and is NOT required by law.
E&O insurance is insurance that will better protect you financially in the event of any errors or omissions. While you are not required to obtain E&O insurance it may be a good idea to obtain it if you are performing certain notarial acts, working on your own, or are not covered under a company’s E&O policy.
Typically, E&O Insurance will cover between $25,000 to $5,000,000, depending on the level you choose, and unlike the bond it does not need to be repaid if used. This means that if you make an error or forget something on a notarization and it causes harm to another party that you would be covered up to the amount of your insurance policy so long as you did not breach any of the covenants of the policy.
Please note that you do not need to remember this slide for the notary exam. This slide is informational only.