What type of insurance protects notaries from lawsuits?

Prepare for the Illinois Notary Exam. Study with flashcards and multiple choice questions, each question offers hints and explanations. Get ready for your test!

Errors and omissions insurance is specifically designed to protect notaries and other professionals from claims arising out of mistakes or oversights in their work. This type of insurance provides coverage for legal costs and damages that may occur if a client alleges that the notary's actions caused them financial harm due to an error or omission in the notarization process.

For notaries, liability can arise if they fail to follow proper procedures, misidentify a signer, or make a clerical error in the notarized document. By having errors and omissions insurance, notaries can safeguard themselves against the financial repercussions of such claims, ensuring they can effectively manage the risks associated with their responsibilities.

Health insurance, life insurance, and general liability insurance do not provide specific coverage for the unique risks faced by notaries in their duties. While general liability insurance covers a broader range of liabilities, it does not typically cover the professional risks associated with errors and omissions. Therefore, errors and omissions insurance is the most relevant and protective measure for notaries against potential lawsuits stemming from their professional activities.

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