If you're a notary public in Texas — or thinking about becoming one — you've probably come across errors and omissions (E&O) insurance. Is it required? What does it cover? And is it worth the cost? Here's what Texas notaries need to know.
What Is Errors and Omissions Insurance?
Errors and omissions insurance (also called E&O or professional liability insurance) protects you if someone claims they suffered a financial loss because of a mistake you made in your notarial duties. This is different from your surety bond.
E&O Insurance vs. Surety Bond
- Surety bond (required in Texas) — protects the public from intentional misconduct or negligence. If a claim is paid, the bonding company comes after you to recover the money.
- E&O insurance (optional in Texas) — protects you from honest mistakes. If you make an unintentional error that causes someone financial harm, E&O covers your legal defense and any damages, without coming after you for reimbursement.
Think of it this way: your bond protects the public from you. E&O insurance protects you from the consequences of honest mistakes.
Is E&O Insurance Required in Texas?
No. Texas law requires a $10,000 surety bond but does not require errors and omissions insurance for notaries public. However, there are situations where it's effectively required:
- Loan signing agents: Most title companies and signing services require E&O insurance (typically $25,000 minimum) before they'll assign you closings
- NNA-certified signing agents: The National Notary Association requires E&O coverage for their certification
- High-volume notaries: If you perform many notarizations, the risk of an eventual error increases
What Does E&O Insurance Cover?
E&O insurance typically covers claims arising from:
- Improper notarization — notarizing without proper identification, missing a signature
- Clerical errors — wrong date, incorrect name spelling, missing seal information
- Failure to administer oath — forgetting to swear in an affiant
- Document handling errors — losing documents, delivering to wrong party
- Expired commission — accidentally performing notarizations after your commission lapses
What It Does NOT Cover
- Intentional fraud or criminal acts
- Notarizations performed outside your commission (knowingly)
- Acts committed before the policy period
- Claims unrelated to notarial duties
How Much Does E&O Insurance Cost?
For Texas notaries, E&O insurance is surprisingly affordable:
- $25,000 coverage: $30–$60 per year
- $50,000 coverage: $50–$80 per year
- $100,000 coverage: $75–$120 per year
Many notary supply companies bundle E&O insurance with your bond renewal, making it easy to maintain both. The NNA, Notary Rotary, and several insurance companies offer policies specifically for notaries.
Who Should Carry E&O Insurance?
Strongly Recommended
- Loan signing agents — you're handling documents worth hundreds of thousands of dollars. One error in a closing package can trigger a significant claim.
- Full-time mobile notaries — the more notarizations you perform, the higher the statistical chance of a mistake
- Notaries handling real estate documents — real estate transactions involve large dollar amounts and recording requirements
Good to Have
- Part-time notaries who perform notarizations regularly
- Notaries in professional settings (law offices, title companies) where they notarize for clients
Lower Priority
- In-house notaries who only notarize for their employer (your employer's insurance may cover you)
- Notaries who rarely perform notarizations (a few per year for friends/family)
Real-World Scenarios Where E&O Helps
Here are examples of honest mistakes that could trigger a claim:
- You notarize a deed but the signer's name doesn't match the name on title exactly — the county rejects the recording, and the transaction misses a deadline, causing the buyer to lose their rate lock
- You accidentally date a document incorrectly, and the wrong date causes a filing to be past a court deadline
- You notarize a power of attorney but forget to attach the required acknowledgment certificate, and the bank rejects the POA, delaying a time-sensitive financial transaction
- A page is missing from a loan package you returned to the title company, requiring a re-signing that delays closing by a week
In each case, someone could claim they suffered financial harm due to your error. E&O insurance covers your defense costs and any damages awarded.
How to Get E&O Insurance in Texas
- Check with your bonding company — many offer E&O as an add-on when you purchase or renew your bond
- National Notary Association (NNA) — offers policies specifically designed for notaries and signing agents
- Notary Rotary / SigningAgent.com — popular with loan signing agents
- General insurance agents — some commercial insurance brokers write notary E&O policies
Questions About Notary Services in Taylor, TX?
We carry both a surety bond and E&O insurance for your protection. Whether you need a general notarization or a loan signing, you're working with a properly insured professional. Call (512) 640-0751 or schedule an appointment.