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The SPW Insurance Standard specifies that a Notary Public who performs signing services will show proof that he or she maintains a $25,000 Notary errors and omissions (E&O) policy.

Notary E&O insurance covers negligent acts, errors or omissions in an insured’s capacity as a duly commissioned Notary. A signing professional must notarize certain documents in the closing package. These documents include, but are not limited to, a Mortgage, Deed of Trust, Signature Affidavit, Name Affidavit, Occupancy Affidavit, Financial Status Affidavit, Trust Certification, Errors and Omissions Compliance Agreement, Correction Agreement Limited Power of Attorney, and a conveyance deed.

Notary E&O insurance is not to be confused with a Notary surety bond, which is required in 31 states. There are several differences between a Notary bond and E&O insurance policy and risks that neither will cover, as summarized in the following chart.

Coverages, Protections and Other Provisions

Surety Bond

E&O Insurance

   Required by law

Yes1

No2

   Covers negligent acts, errors or omissions on notarized documents

Yes

Yes

   Covers fraudulent acts on notarized documents

Yes

No

   Covers signing mistakes on non-notarized documents

No

No

   Protects parties injured by a Notary

Yes

Yes

   Protects the Notary

No

Yes

   1 In 31 states (In Louisiana, non-attorney Notaries must have either a surety bond or insurance policy)   2 Except for those Louisiana non-attorney Notaries who opt to carry insurance instead of a surety bond

The limit of liability specified in the SPW Insurance Standard reflects an amount that signing professionals reasonably could be expected to carry while providing protection against the potential risks to the parties due to the signing professional’s negligence, error or omission in performing a notarial act.