You need professional E & O insurance because, sooner or later, everyone makes a mistake.  No matter how thoroughly you have studied the laws and regulations, no matter how experienced you are as a notary, and no matter how carefully and meticulously you perform your notarial duties, there is always the possibility you may slip up and make a mistake.  If your mistake results in a flawed legal transaction in which someone suffers financial loss, you could find yourself in court trying to explain what happened.

Notaries are most often sued for not requiring sufficient identification from someone who later turns out to be a fraud.  But notaries have also been sued for not noticing and challenging inconsistencies on the face of a document, and for acknowledging a signature that was genuine but which was obtained by deception.

Being sued is a really, really unpleasant experience.  And even if you eventually win the case, you will be faced with paying your attorney’s fees, which can be very expensive. (Courts usually do not award attorney fees to the winning party.)

Under the American Council’s errors and omission insurance policy, our insurance company is obligated to appoint defense counsel and defend against any claim made against a member notary, and to pay all amounts that the notary may be required to pay as a damages award, attorney fees, and claims expenses, up to the policy limit of $50,000 per claim.