Errors and Omissions Insurance for Notary Signing Agents

Published February 16, 2023 · Updated May 26, 2026

Errors and Omissions (E&O) insurance protects notary signing agents from financial loss if a client claims you made a mistake during a notarization. Almost every signing service and title company requires you to carry E&O coverage before they will assign you work. Here is what you need to know about what it covers, how much it costs, and why you need it.

E&O insurance pays your legal defense costs and any resulting judgment or settlement if a client sues you for a notarial error. This includes attorney fees, court costs, and damages you are ordered to pay, up to your policy limit. Without it, you pay out of pocket for every dollar of defense and damages.

E&O vs. Surety Bond: Not the Same Thing

Most states require notaries to post a surety bond as part of their commission. The bond protects the public. If someone suffers a financial loss because of your notarial misconduct, they can make a claim against your bond and get paid up to the bond amount.

Here is the catch: if the surety company pays out on your bond, you have to reimburse them. Every dollar. The bond does not protect you. It protects everyone else.

E&O insurance is the opposite. It protects you. If a client sues you for an honest mistake (not fraud or intentional misconduct), your E&O policy pays your legal defense and any judgment, and you do not reimburse the insurance company. You pay the premium, and the policy takes the financial risk.

What E&O Insurance Actually Covers

E&O policies for notaries typically cover:

• Mistakes in notarial certificates (wrong date, wrong name spelling, missing seal)
• Failure to properly verify a signer’s identity
• Failure to administer an oath or take an acknowledgment correctly
• Errors in loan document signings (missed signatures, wrong documents notarized)
• Accidental notarization for someone who appeared competent but later was deemed not

What E&O does not cover:

• Intentional fraud or criminal acts
• Dishonest or knowingly illegal behavior
• Claims that exceed your policy limit (you pay the excess out of pocket)

Coverage Levels and Costs

E&O policies for notaries come in several coverage levels. Here are typical price ranges:

• $15,000 coverage: $30-$50/year. Good for getting started with basic signing services.
• At $25,000 coverage ($50-$80/year), you meet most signing service minimums.
• $50,000 coverage runs $80-$150/year and is accepted by most title companies.
• The $100,000 tier ($150-$400/year) is required by the highest-paying signing services and many national title companies.

If you are just starting out and want to keep costs low, a $25,000 policy is a practical starting point. You can upgrade later as you get more assignments from higher-paying companies.

Why Signing Services Require E&O

Almost every signing service, title company, and lender requires proof of E&O insurance before adding you to their notary roster. Their reasoning is straightforward: if you make a mistake on a loan package that costs them money (a missed signature that delays closing, a wrong date that invalidates a document), they want to know there is insurance to cover the loss.

Companies like Snapdocs, NotaryDash, and major signing services typically list E&O as a profile requirement. Some will not even show you available jobs until you upload a current certificate of insurance. The major national title companies (First American, Old Republic, Fidelity) generally require $100,000 in coverage.

Annual vs. Commission-Term Policies

When shopping for E&O insurance, pay attention to the policy term. Some companies sell policies that last one year, while others offer terms that match your notary commission (typically 4 years).

A one-year policy has a lower upfront cost but you renew annually, and premiums may increase each year. A four-year policy costs more up front but locks in your rate for the full commission term. If you plan to stay active for your entire commission, the four-year policy is usually cheaper overall.

Before buying, compare the total cost of four annual renewals against one commission-term policy. The difference can be $100 or more over four years.

Common Bond Amounts by State

State-required bond amounts vary widely, and understanding your bond requirement helps you decide how much E&O to carry on top of it:

• California: $15,000 bond required
• Texas and Pennsylvania both require $10,000 bonds
• Florida requires $7,500
• New York does not require a bond

These bond amounts are often too low to cover a real claim in a loan signing. A single missed signature that delays a mortgage closing can cost thousands in per-diem interest and re-drawing fees. That is why title companies want you to have E&O coverage that goes well beyond the state bond minimum.

Real Claim Scenarios

Here are examples of the types of claims that E&O insurance covers:

• A notary misspells a borrower’s name on a deed of trust. The county recorder rejects the document, and the title company has to pay to re-draw, re-sign, and re-record. The title company sues the notary for the $3,800 in extra costs.
• A notary fails to notice that the signer’s ID had expired. Months later, the transaction is challenged and the notary is named in the lawsuit. Legal defense costs alone run $15,000 before the case settles.
• A notary accidentally notarizes a document dated three days in the future. The lender claims this discrepancy caused a compliance violation and demands the notary cover the cost of corrective filings.

These are all honest mistakes, not fraud. E&O insurance pays the defense and any judgment. Without it, the notary pays from personal assets.

Frequently Asked Questions

Is E&O insurance required for notaries?

No state requires E&O insurance by law. However, most signing services and title companies require it as a condition of working with them. If you want to do loan signings, you need it.

How much E&O coverage do I need as a signing agent?

Start with at least $25,000 if you are new. Many national title companies require $100,000. The cost difference between $25,000 and $100,000 coverage is typically $100-$300/year.

Does E&O insurance cover intentional fraud?

No. E&O covers honest mistakes and negligence, not intentional misconduct or criminal acts. If you knowingly participate in fraud, no insurance policy will protect you.

Where can I buy notary E&O insurance?

The NNA (National Notary Association) sells E&O policies, as do many insurance brokers and online providers. Compare prices across a few sources before buying.