What insurance do law firms need for notary services?

Attorneys frequently perform notary services as part of their legal practice, particularly in real estate, estate planning, immigration, and corporate transactional work. Most legal malpractice policies include notary services within the definition of covered professional services, provided the notarization is performed in connection with the attorney's legal work. This means that if a notarization error on a deed, will, or business document gives rise to a claim, your malpractice policy responds.

However, many states also require notaries to obtain a separate notary bond, which is a surety bond that protects the public against errors or misconduct by the notary. The required bond amount varies by state, typically ranging from $5,000 to $25,000. This bond is not a substitute for malpractice insurance and provides minimal protection relative to the potential exposure from a notarization error on a high-value document.

Firms that perform remote online notarization, which has expanded significantly in recent years, should pay particular attention to their coverage. RON services involve electronic signatures, digital identity verification, and audio-video recording, which introduce technology-related risks that may implicate both the malpractice and cyber liability policies. Some states have specific insurance requirements for remote online notaries that exceed the standard notary bond requirements.

If your firm performs notary services for non-clients or as a standalone service rather than as part of legal representation, confirm that your malpractice policy covers these activities. Some policies limit coverage to notary services performed in connection with the rendering of legal services to a client, which could exclude notarizations performed as a courtesy for walk-in customers or community members. A separate notary errors and omissions policy may be appropriate for firms offering stand-alone notary services.