Notary Public Professional Indemnity Insurance

A Notary Public is a specially-qualified lawyer, regulated through the Faculty Office of the Archbishop of Canterbury, who serves as an impartial witness in performing a variety of official fraud-deterrent acts, which are related to the signing of important documents.

The notaries’ insurance indemnity limit is £1,000,000.

Notaries are covered by a formal complaints procedure in the event that a client is dissatisfied with the service provided, and details of how to make such a complaint are contained within the notaries’ terms of business, or upon request from them.

There are approximately 800 Notaries across England and Wales, and Notaries Public form one of the oldest branches of the legal profession.

This work involves the authentication and valid execution of documents.

Typical examples of work carried out by notaries include:

• Authenticating documentation needed for emigration and applications for marriage abroad.
• Notarising copies of passports and educational qualifications.
• Certifying the identity of a company or its officers for private or public sector bodies or regulators abroad.
• Notarising the due execution of documentation in relation to the purchase of land or other assets abroad.
• Notarising copies of company documents.
• Notarising powers of attorney relating to the conduct of business, property transactions or Court proceedings abroad.

The Faculty Office of the Archbishop of Canterbury set out their own clearly defined rules highlighting the extent of the PII cover to be maintained by members. These include a minimum Limit of Indemnity of £1,000,000 any one claim and with cover to be afforded with regards to transactions in Canada and the USA. These rules are set out on the Faculty Office website and form part of the Practising Certificate requirements, Rule 6.1.1.

The nature of the specialist advice provided by members does we feel require a similarly specialist PII approach, allowing members to be safe in the knowledge that their cover is geared to their needs.

Combine the above and there is a need for a PII facility offering as stable an approach in terms of underwriting and pricing as is possible in a volatile insurance market.

With regard to professional indemnity insurance, it is helpful to consider solicitor-notaries separately.  The Solicitors Regulation Authority takes the view that, for the purpose of professional indemnity insurance the notarial practice of a solicitor-notary may be regarded a part of his practice as a solicitor.  On that basis they require insurers providing professional indemnity insurance to solicitors to offer this additional cover for notarial work if it is treated as part of the solicitor’s practice.

Though we appreciate that some continue to rely upon the PII arranged on behalf of their Employer, i.e. the Solicitors’ practice, under the Law Society Minimum Terms & Conditions (MTC), provided of course the Employer has specifically advised the Insurer who then endorses the policy to include the individual Notary.

However, as a Solicitor’s practice, we would suggest you give some thought to the following points and in the event of any issues, consider the option of the more specific cover under this facility.

• The level of policy excess is likely to differ considerably. For example, our facility will offer an excess of £250 each and every claim. A Solicitor’s PII policy will likely have an excess of several thousand pounds each and every claim.
• Have you ensured your Notary is provided with a copy of your firm’s policy document or otherwise ensured they are aware of your policy conditions e.g. the policy excess or, claims notification conditions etc?
• Claims handling. Does your Insurer operate its own in-house claim team? Many will outsource this role, so who would undertake your Notary’s defence? What is the process?
• Are arrangements in place between you and the Notary should your firm be involved in plans to merge or sell, perhaps as part of a succession plan? Under the MTC rules, a run-off cover will have to be effected one way or the other for the firm itself but your firm’s PI Insurers would not be under any obligation to afford run-off cover, or indeed ongoing cover, to the Notary. Would the level and payment of a policy excess become an issue for further consideration?

The majority of professional indemnity insurance policies for notaries public are issued on a claims made basis and this has implications that need to be considered when you cease trading, sell your business or retire with a possible run-off insurance requirement.

If you have sold, ceased trading or retired from Notary duties then you will need Run-Off Cover to provide you with protection for potential claims arising from work completed before you ceased trading

Policies on a claims-made basis should include a retroactive date to protect the policyholder against claims in respect of work undertaken before the current policy year. The retroactive date should coincide with the date you started trading or the effective date of your first notaries public professional indemnity policy. It is possible to arrange a policy with retroactive date of none, which effectively provides cover in respect of all previous periods.

The cost of your notaries public professional indemnity cover will depend upon a few key factors including the exact nature of the work you undertake, how much work you undertake annually, your previous experience and whether you have previously had any claims made against you. Generally speaking the cost of professional indemnity insurance for a  notary public has reduced in recent years as a result of greater competition and a greater awareness of the risks faced by notaries public?