Errors & Omissions (E&O) Insurance for Notaries

Errors & omissions (E&O) insurance protects a notary's own finances if they make an honest mistake that causes a financial loss — covering legal defense costs and damages up to the policy limit. It's optional in every state, unlike a notary bond, which most states require and which protects the public, not the notary. The two are commonly confused because they both come up during commissioning, but they cover different parties: if a notary's error causes a loss, the bond pays the injured party first, then the bonding company can seek reimbursement from the notary personally — E&O insurance is what actually protects the notary from that reimbursement claim.

Why It Matters More for Some Notaries Than Others

A notary handling occasional simple documents carries relatively low exposure per appointment. A loan signing agent handling six-figure mortgage closings carries meaningfully more — which is why E&O coverage well above the state bond minimum is standard practice for anyone doing loan signings regularly, not just a nice-to-have.