A Simple Guide to Proper Insurance for Notary Public

You wear a lot of hats as a business owner and need to know so much. You must understand how to manage a business, including how to be a Notary, a Signing Agent, an Administrative Assistant, an Advertising Manager, a Business Manager, a Tech Support Specialist, a Purchasing Agent, and a Bookkeeper. Also, be aware of the types of insurance you’ll require to safeguard anything you undertake. If you want best notary public consultant in California the contact us.

As a Notary, we are aware of the Bond that must be purchased in order for us to get our commission. That Bond is similar to insurance, but it is for the benefit of the people we serve. That is not the case with us. Its purpose is to pay monetary compensation to someone who has been hurt as a result of our conduct, whether intentionally or unintentionally while performing our Notarial obligations. This is a mandate of our state’s governing agency, but it is of little use to us. If someone makes a claim on your Bond, you’ll have to pay the money back. You may also be held personally accountable for any fees that exceed the bond amount. Not to mention your own legal bills, court charges, and other out-of-pocket costs.

Errors and Omissions Insurance

We need to obtain E&O or Errors and Omissions Insurance coverage as a Notary and as a Signing Agent working with loan paperwork. It’s a good idea to acquire this form of insurance if you work as a General Notary. Most hiring organisations ask that you have a particular amount of E&O insurance if you work with loan paperwork.

Notaries are covered under Errors and Omissions insurance. This type of insurance protects you from notarial errors, unintentionally breaking the law, financial damages caused by a notarization mistake or omission, being named in a lawsuit even if you did nothing wrong, notarizations caused by forging your signature or counterfeiting your seal and will cover any damages paid to an injured party after a settlement. It should cover all of your legal costs without requiring you to pay a deductible, and it may be used to refund a bond loss in specific instances.

Coverage of cybercrime

This would be for claims using Remote Online Notarizations, or RON. While this is still a relatively new sector, the risk of legal action arising from the security level used during a RON signing on NPPI on your computer, even if just momentarily, is increasing. This would safeguard you from data breaches and other cybercrimes that may jeopardize sensitive information, as well as risks like viruses and hackers, on the internet and anywhere else you keep data. Cybercrime insurance would cover financial losses caused by a breach of network security or privacy measures, which might result in any form of loss.

Coverage for general liability

Every company has some form of general liability insurance. We, too, require this since we are company owners. This would include anything else we perform as part of our job. Consider driving over a homeowner’s mailbox as you approach a signer’s house. Alternatively, you may leave a stain on their carpet as you enter. Alternatively, you may knock over a costly vase with your bag. Or, much worse, walking on their little puppy and injuring the poor creature.

It may be something costlier, such as setting fire to the table when you plugged in your scanner. None of these scenarios would be protected by your E&O policy, putting your savings account in danger, as well as your house and other valuables. Ask your insurance agent why they don’t take your business seriously if he or she says your homeowners policy should cover you for these things.

Questions to Ask with best notary public consultant in California

When looking for insurance of any sort, it’s never a smart idea to go with the cheapest option. To make sure we understand what we’re getting, we’ll need to ask some questions. What exactly does it include? What are the policy’s boundaries? Sometimes policies are established for a total amount, but only 1/4 of that amount is accessible for each claim, with the remaining amount serving as an aggregate limit throughout the policy’s term.

Those are the questions you should be asking. Another crucial consideration is whether the policy is paid out on a claims-made or an occurrence-made basis. Only occurrences that occur and are reported within the policy’s active term are covered by a claims-made policy. Regardless of when the claim is reported, Occurrence-made insurance provides lifetime coverage for occurrences that occur within the policy period. It might be years before you are served with a lawsuit for anything you notarized in our industry. As a result, it’s critical for us to look for plans that cover claims on an Occurrence-by-Occurrence basis.

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