Notary Service By Zoom

In a recent newsletter, I mentioned the exclusion on many bankers professional liability insurance policies for claims where a signature was notarized without the customer appearing in front of the notary.

Here is one insurer’s exclusion:

“The Insurer shall not be liable to make any payment for Loss in connection with any claim arising out of or in any way involving the notarization or certification of a signature of a person unless that person or someone claiming to be that person physically appeared before the Insured at the time of notarization or certification.”

A North Dakota client emailed me that their bank is considering using Zoom for notary services.

If your policy has the exclusion above you do not, in my opinion, have coverage for professional liability claims involving Zoom notaries.

I am aware of one insurer issuing endorsements that allow for Zoom notaries.  You have to ask for it though.  Talk with your agent.

The insurers I talked with hope this will not become a normal part of notary services. This, to me, has trouble written all over it. As things open up this seems like an almost unnecessary risk.

Talk with your agent and get specific advice from your insurer.