|
What is Errors and Omissions Insurance and why would you want it?
The state of California requires every notary to carry a $15,000 notary bond. Many notaries think that's
enough to cover any mistakes they make. However, the notary bond exists only to pay the public. As a notary,
if you make a mistake and a court finds against you, are personally responsible for the damages awarded.
The bond will chip in the first $15,000 of the damages to cover the loss for this amount. However, the
bonding company will then ask you for the money. If you don't have it, the bonding company will attach your
wages and anything you own to secure repayment.
Errors and Omissions insurance covers you. If you are found at fault and required to pay damages, E&O will
your expense.
$100,000 E&O Coverage - Required by Many Companies for Signing Agents
$100,000 E&O coverage is the maximum amount of E&O coverage allowed by most bonding companies. The price
covers the full four years of your notary term. Many loan signing companies require this high amount of
Errors and Omissions insurance. The reason for this high amount is that the potential liability from a
mistake on a real estate closing package is higher than normal. If you are planning to do loan closings
as a signing agent, $100,000 E&O coverage will help you to get noticed by the companies that you contact.
$100,000 E&O Insurance for 4 years = $170.00
|
