Did anyone go to the "NNA Conference" in Dallas and take the "Legal Course" - where the attorney went over recent notary cases?
I did - and it was quite the eye opener....The Lawyer went over one case that happened, I believe New York - not sure it was months ago - where a Notary Public assisted in the documents on a bid on a contract, but forgot to sign, but did put her seal. No one caught it, and the bid was turned in denied as incomplete, and the company lost the bid $1mil. The company sued the notary for the loss. They won - but the error insurance did not cover the total, and the Notary was held liable for the balance. If she had had liability insurance, it would have helped.
The point being - as signing agents - though we are there to witness the signing of the documents and notarize where applicable - we are held to the degree of insuring all documents are signed and executed properly. IMPORTANT to read the instructions from lender and title companies, and follow its direction and maintain a copy of the instructions to protect yourself.
The attorney went further to say - E&O insurance only covers error made as a notary public, not the documents that do not require notarization. In other words, if you forget - or - neglect to have the borrower sign a document correctly - and the loan is denied due to improper execution of a non-notarized document - the borrower loses the loan and/or the lender loses money due to the notary's error - you can be sued - and the E&O insurance and surety bond are not valid. Therefore, the liability falls on you individually.
Thus, comes in "personal liability insurance", and whether you are a dba or LLC. However, there is no true way to protect your personal assets either way.
Just thought I would share! Any comments?