Hello everybody! It's Friday FAQ!
This is Bill Soroka, founder of NotaryCoach.com and the Sign and Thrive Notary Training Course and Community.
*Full Transcription Below*
Thank you for keeping up with all the great questions coming in. You know, you can always email questions to [email protected], or you can set up a Mentor call with me at NotaryCoach.com in the upper right hand corner. It's real easy to do. Just pick a time that works for you.
Today we're going to talk about what the difference between a Surety Bond (otherwise known as a Bond), and E&O Insurance, (otherwise known as Errors and Omissions Insurance). I get this question a lot, and there's a lot of confusion, especially if you're new to the industry. So let's just lay out the main differences, starting first with a Surety Bond.
Some States require that you have a Surety Bond to even become a Notary Public. But that's not required in all States, so it's important that we know that. It's still probably a good idea to have. In some instances, it could be considered a selling point if you're bonded. A Surety Bond essentially protects the CONSUMER from any errors or mistakes that you might make.
The other big feature with a Bond is if a consumer files a claim against the Surety Bond and the surety company ends up paying out on it. As the principle, you'll have to reimburse the surety company for that.
Now let's talk about Errors and Omissions Insurance. This is completely different.
This is insurance that is designed to protect YOU. So if you end up making an error or making a mistake and there happens to be a claim against you and you have to go to court, this Errors and Omissions Insurance can help cover any damages that were found, or possibly even some of the court and attorney fees.
Now keep in mind, guys, I'm not an insurance salesman, so I'm not an expert. And I'm not giving you advice on this. So always get the legal or insurance advice that you need from a professional.
But that's the main difference.
Oh yeah, with the E&O Insurance, if you do end up getting a claim and something has to be paid out for you, you do not have to reimburse that.
That's a big difference on those two.
So guys, keep the questions coming in. Thank you so much for your time and enjoy your weekend!
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