Information and requirements related to errors and omissions (E&O) insurance with specifications to Proof. Professional liability policies and differences between aggregate and per occurrence information are also in this article.
Who this is for
Errors & omissions insurance is only required for notaries who answer calls in the on-demand queue. If you are not an on-demand notary, E&O insurance is optional for your Proof account.
What it is
Errors & omissions (E&O) insurance protects you from liability for false claims or unintentional notarial mistakes or omissions. You must provide information about your policy, and you must upload a copy of your E&O insurance policy to the platform for at least:
- Real estate: $100,000 per occurrence
- Retail and business: $25,000 per occurrence
Professional vs personal liability policies
A professional liability insurance policy is issued to a business and stays in place only if the business continues to pay the monthly premium.
A standard E&O policy is issued to an individual notary and is pre-purchased for a set time, so it is less likely to lapse prematurely.
We allow businesses to use a professional liability insurance policy only if they name Notarize, Inc. (dba Proof.com) as a certificate holder so that we are notified if the business stops paying the insurance premium and the policy lapses.
Errors & omissions insurance requirements for Proof
Your business may rely on an umbrella policy if it covers each individual notary for the required amount (at least $100,000 for Real Estate or $25,000 for Retail or Business).
🚨 If you are an independent contractor taking calls via the On-Demand Notary (ODN), Notarize, Inc. (dba Proof.com) must be listed as a certificate holder if you use a professional liability insurance policy. This requirement only applies to notaries who are enabled to take calls from the ODN queue.
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This does not apply to notaries employed by an organization that is a customer of Proof, known as in-house notaries (IHNs).
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This does not apply to notaries who only initiate their own transactions and do not take calls from the ODN queue.
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This does not apply to personal E&O policies.
Overview of how E&O insurance works
E&O Insurance is liability coverage designed to protect both a notary and the person who hired the notary.
A notary can be sued if they make an unintentional error.
Aggregate vs. per occurrence
- Aggregate amount = The total amount of coverage under the policy
- Amount per occurrence = The amount of E&O coverage per “claim” (occurrence = claim)
Example
A lender asks for $100,000 per occurrence. For each E&O claim, the lender would like to be able to use all $100,000 of that insurance (each occurrence = 1 claim):
- If the policy is $100,000 in aggregate (total), with the ability to pay out $100,000 per occurrence (per claim), then 1 single claim could wipe out the E&O coverage.
Typically, E&O insurance is $10,000 per occurrence, covering 10 claims at $10,000 each if your total policy is $100,000. Having the policy structured "per occurrence" potentially provides coverage that could be shared among multiple lenders and title agents.