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Do notaries public need E&O insurance to operate in Texas

Nov 19, 2020 · 3 minutes to read

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Notaries public in the state of Texas need mainly two types of insurance. They don’t just require a surety bond that has to be signed with the state. They also require E&O insurance also known as Professional Liability Insurance.

These are to safeguard against human error that catches up with us from time to time. Notaries deal with authentication and authorization most of all. If they make a mistake, it could be much more damaging than the average slip up. Hence, these two insurances, either for the client or for the notary, are highly recommended

E&O Insurance in Texas

The most careful of notaries can be sued for errors, whether intentional or not. Notary Errors and Omissions Insurance is an extremely important tool which protects notaries in Texas. It can help with costly lawsuits up to the policy limit, as well as settlements out of court.

What is the Importance of E&O Insurance?

Sometimes slip ups and negligence are inevitable, the E&O insurance is there  to protect notary public from these risks. Since the insurance is also quite affordable, it’s a very reasonable alternative to paying for the damages yourself.

Bonds don’t protect you however. They’re there for the protection of the public. Since notaries are required to maintain the bond themselves.

While there is no legal requirement that you get errors and omissions insurance in Texas, it’s in your best interest. Buy it to be safe even on the worst of days. Think about this; lots of insurances aren’t required by law. These include health insurance or house insurance.

Losses Covered by E&O Insurance

This insurance covers the costs of any claim, lawsuit, or settlement that are brought against you. Of course, this is in the case of unintentional errors. Damages will be paid out to the party that has been financially damaged.

Settlements and judgments will be paid to the party whether settled out of court or through a judgment. However, attorney’s fees, court costs, and defense costs are also covered by the policy. If the claim isn’t valid, then you can still be faced with court costs. Hence, you need this insurance no matter what.

Surety Bond

Notaries Public have the authority to legally witness as well as authenticate a person’s identity. They can also certify signing certain documentation. They can also take affidavits and depositions as well as statutory declarations. They can administer oaths and affirmations since it is allowed by the State of Texas.

Since they are fraud deterrents, a notary is trusted by the people to do just that. So, if they make mistakes and cost their clients potentially thousands of dollars, there has to a fallback. Hence, a $10,000 surety bond is signed by each notary with the State of Texas. This lasts for a term of 10 years and protects the public from any misconduct.

What is a Notary Bond for?

Know that the Surety bond you purchase is purchased for the public. It is an assurance that any error that you make doesn’t irrevocably harm the public in any way. It’s not a judgment on your skill or your ability; it’s just a precaution. Human error, as we’ve seen throughout history, is bound to catch up with even the most skilled professional.

Hence a bond doesn’t qualify as insurance protection for you. Unintentional mistakes, negligent omissions, and human errors are unfortunately part of the business. Insurance is something that protects you, however.

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