What Is E&O Insurance?
Errors and omissions (E&O) insurance is professional liability coverage for notary signing agents. It protects you from the financial consequences of mistakes made in your professional capacity — a missing seal, an incomplete certificate, a procedural error that required a document to be re-executed.
E&O is not required by law in most states but is effectively required by the industry. Most title company vendor programs and signing service platforms require E&O at $25,000–$100,000 minimum.
What E&O Covers
- Defense costs when a claim is made against you — even unfounded claims
- Damages up to your policy limit if you are found liable for a notarial error
- Settlement costs within policy limits
- Errors in notarial certificates, missing seals, procedural omissions
What E&O Does Not Cover
- Intentional misconduct or knowing violations
- Criminal acts including notary fraud
- Claims filed after the policy period ends (claims-made policies)
- Bodily injury or property damage (requires separate general liability)
Coverage Levels and Cost
| Coverage | Annual Premium (Est.) | Typical Use |
|---|---|---|
| $25,000 | $65–$90 | Minimum for most signing services |
| $100,000 | $85–$130 | Recommended for loan signing agents |
| $500,000 | $150–$250 | High-volume or direct title work |
Buy $100,000 coverage. The annual premium difference over $25,000 is small; a single real estate transaction dispute can easily exceed $25,000 in re-draw costs, legal fees, and delay damages.
FAQ
No. A surety bond (required in many states) protects the public from your misconduct. E&O protects you from the cost of defending and paying claims. The bond pays out to aggrieved parties; E&O covers your defense and liability costs. You generally need both.
The NNA offers an E&O program for members. Other providers include Hiscox, Philadelphia Insurance, and specialty brokers. Compare coverage terms and exclusions, not just premium prices.