This insurance is not required for an individual to hold office as a notary public in the State of Florida. A notary public can be sued however, even if careful in performing his/her duties as a notary public. The following are examples of actual law suits against notaries:
- In California, a notary acknowledged signatures in a real estate transaction which later were proven to be forgeries. Even though she was acting on instructions from her boss, the notary was held liable for $5,000 in damages and $2,493 in court costs.
- In a recent Pennsylvania case, a notary acknowledged a signature on an application for a duplicate driver's license. The application was used to cash a stolen check. Even though the notary felt he had exercised due diligence in establishing identity, the court held him liable - in the amount of $1,980.
- A Texas notary was sued for allegedly affixing her seal to a forged signature on a certificate of title. Although judgment was finally rendered in favor of the notary, she did incur $560 in legal fees.
Fortunately, the notaries in the above cases are covered by Service Insurance Company Notary Public Errors & Omissions Insurance. Since a Service Insurance Company Policy contains no deductibles, each and every dollar of damages and legal costs are paid.
Any loss up to $7500 will be paid to the victim of a claim by the notary's bonding company. The bonding company can sue the notary, however, for reimbursement of this bond payment, plus any legal expenses. In addition, the victim can sue the notary for any legal expenses and other losses not covered by the $7500 bond.
The notary's legal expenses in defending claims (valid or not) plus judgments for notary claims will be paid by errors and omissions insurance to the limits of the policy. Legal expenses for claims are paid in addition to the policy limits.
Notaries are vulnerable because they handle many important documents such as deeds, mortgages, titles, and contracts. Claims arise involving notary acknowledgment of signatures which are forged, incomplete or otherwise defective in real estate transactions, motor vehicle transfers, and cases where the validity or date of a document may be an issue. Even if the suit is not valid, the notary could still be faced with a legal bill for defense. Unless the notary is insured, the defense costs would be paid by the notary - win or lose.
The Individual Errors and Omissions Insurance Policy covers the named notary with no coverage provided for the notary's employer. The policy is issued to cover the four-year term of the notary appointment. The Employer's Group Errors and Omissions Insurance Policy covers all employees of an employer who hold a notary commission. The employee is the "insured" and the employer is an "additional insured" under the policy. The employee is covered for notarial services on or off his employment activities. The one year policy premium for the group policy is determined by the number of notaries employed by the employer at the inception of the policy. New employees who are notaries are automatically covered by the policy until renewal when the "number of notaries employed" needs to be updated on the policy. Terminated employees who are notaries are no longer protected by the policy.
The chart below details the available policy limits and corresponding premiums, depending on whether you chose an individual or group policy. Once you have selected the type of policy that best suits your needs, simply complete the application accordingly and forward it to our office with your payment (made payable to Florida Notary Association, Inc.) Should you have any questions concerning the computation of your policy premium, please telephone our office at (800) 432-4254 and we will be happy to assist you. Your policy will be sent to you in your notary appointment package in approximately two weeks.
| Policy
Limits |
Individual
Policy
|
Group
Policy |
| Term |
Term
Premium |
Term |
Term
Premium
Per Employee |
| 5,000 |
4
Years |
$15.00 |
1
Year |
$6.25 |
| 7,500 |
4
Years |
$20.00 |
1
Year |
$8.00 |
| 10,000 |
4
Years |
$30.00 |
1
Year |
$10.00 |
| 15,000 |
4 Years |
$40.00 |
1
Year |
$12.50 |
| 25,000 |
4
Years |
$60.00 |
1
Year |
$15.00 |
| 30,000 |
4
Years |
$75.00 |
1
Year |
$18.75 |
|
| |
|
Policy
Limits
|
Number
of
Employees |
X |
Premium
Per Employee
|
= |
Policy
1 Yr.
Premium |
| (A) |
(2) |
X |
$6.25 |
= |
$12.50 |
| (B) |
(3) |
X |
$8.00 |
= |
$24.00 |
| (C) |
(3) |
X |
$10.00 |
= |
$30.00 |
| (D) |
(2) |
X |
$15.00 |
= |
$30.00 |
| (E) |
(2) |
X |
$18.75 |
= |
$37.50 |
|
