Notary Notes Magazine - DEMO - (Page 9)

NOTARY NOTES Notary 101 Protect Yourself Against Liability Y ou’ve got a great cell phone plan, a computer with lots of memory, a printer that prints documents quickly and yet, you may not have the one necessity that protects your notary business financially: Notary Errors and Omissions (E&O) Insurance. What if you are sued by a customer? If a claim is made against you, YOU will be responsible for paying for an attorney to represent you in court and YOU will be responsible for court costs, fines and settlements. Notary E&O insurance covers notarial mistakes, which may include properly notarizing a forged signature or failing to affix your seal. Even if you never make a mistake during your notary commission, there is always a possibility that you could be accused of wrongdoing. Notary E&O Insurance will cover the cost of your defense. Notary E&O Insurance protects you, the notary, for your actions during the life of the policy, even if a lawsuit is filed long after you are no longer a notary. It also insures you, the notary, against financial loss when your actions cause financial loss to the customer. It’s like malpractice insurance for notaries and notary signing agents and doesn’t have to be paid back. Premiums are low cost and policies are available in $30,000, $50,000 and $100,000 coverage amounts. Why risk your financial future? For complete details and ordering information see Page 7. As a notary you are bonded. But a notary bond protects your customers in case you make a mistake. You have to pay the bond company back in case of a claim. When Will You Need E&O? f you think that Errors and Omissions Insurance (E&O) isn’t worth the price because it’s optional for notaries, consider this case. I A notary public, let’s call her Joan, spent 25 years, a quarter century of her life, working for a mortgage company. She had the same supervisor the entire time. Over the years Joan notarized many documents for her supervisor without actually witnessing the customers’ signatures. After all, the supervisor assured the notary that he had witnessed the signing of the document and the notary trusted her boss. The supervisor assured the notary that she did not need E&O Insurance nor did she need to keep a register or any kind of record of her transactions because all of her notarizations were done for the mortgage company. The supervisor told the notary the company would “cover” her in the event of any legal problem. www.notary.org Eventually, the mortgage company went out of business and Joan and her supervisor were left to fend for themselves. Reading the newspaper several months later, the notary discovered that her supervisor had been indicted for fraud and embezzlement for work he had done at the mortgage company. A short time later, the supervisor fled the United States to avoid prosecution. It didn’t take long for the notary’s world to unravel, as several lawsuits were filed against her for allegedly notarizing forged signatures on some of the company’s documents. Because she could not afford to cover her legal costs in the lawsuits, Joan was forced to declare bankruptcy. The lack of an E&O policy and the lack of notarial knowledge combined to create this financial disaster for Joan. This probably would not have been the case had the notary obtained E&O Insurance and taken notary education. For minimal premiums, Joan would have received coverage for her legal costs as well as a qualified attorney for her defense. In addition, she would have been covered for any settlement against her. Remember, E&O Insurance protects the notary against financial loss when one of her actions causes financial loss to a customer. Unlike the required notary bond, which protects the customer, and must be repaid by the notary, E&O protects the notary. E&O pays for losses before the bond and does not have to be repaid by the notary. E&O might not be required but it is a great way for a notary to avoid a financial disaster. Unfortunately for Joan, she had no E&O policy and now she faces financial ruin. June/July 2008 | Notary Notes | Page 9 http://www.notary.org

Table of Contents Feed for the Digital Edition of Notary Notes Magazine - DEMO

Notary Notes Magazine - DEMO Contents From PAN’s Mailbox From the President’s Desk Notary Notes is Going Green PAN Can Help Member Businesses Complete All Appointment and Reappointment Tasks Before You Notarize CSR Handles a Wide Range of Customers’ Bond Questions PAN and Staples Work Together to Make it Easy for Members PAN Member Slowing Down (Well, Sort of) After 45 Years PA Recorder of Deeds Fees 2008 Notary 101: Protect Yourself Against Liability When Will You Need E&O? Sister of Mercy Appreciates PAN Attorney Knows Notary Law When it Comes to Venue To Keep or Not to Keep Copies Signing Up for Protection: Another Bill-and-Ralph Story Affidavits Spring Into Action Against Trampolines Pennsylvania Announces Notary Disciplinary Actions Help Us Prevent ID Theft The Electronic Notary: Electronic Notary Initiative Moving Slowly Seminar Schedules Know Your Forms: MV-44 Form MV-913 Revised for 2008 NASCAR Race Season Environmental Protection Publishes Final CARB Certification Regulations Old Editions of MV-4ST are Obsolete June 1

Notary Notes Magazine - DEMO

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