In the State of Michigan a Notary is required to maintain a $10,000 surety bond. This is a bond that protects the public from a Notary’s misconduct or negligence. A Notary may choose to purchase an additional Errors & Omissions Insurance policy to cover themselves against claims or lawsuits resulting from unintentional notarial errors.

In the event of notarial misconduct, whether intentional and unintentional, both the Notary and the surety company can be sued in civil court for damages. The surety company is only financially liable up to the amount of the policy, whereas the Notary can be found in excess of the policy amount as a result of their improper acts. Additionally, the surety company can seek compensation from the Notary for any damages they may have to pay out on behalf of the Notary’s misconduct.

An E&O insurance policy is usually purchased by a Notary to cover any unintentional errors or omissions they may make in the process of notarizing a document. The amounts can range from $10,000 to $1 million. During a lawsuit, the insurance company will cover the cost of the Notary’s attorney, any agreed settlement amount and any costs assessed by the court, if applicable, up to the limit of the policy. Generally speaking, an E&O policy will only cover unintentional notarial misconduct. Notary acts committed fraudulently, intentionally or with willful disregard of the law are usually not covered.

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