Civil Liability

Notaries who cause harm through their misconduct may be held civilly liable for damages. Understanding liability helps notaries protect themselves and the public.

Sources of Liability

A notary may be sued for:

• Negligence - Failing to exercise reasonable care
• Fraud - Intentional deception
• Breach of duty - Violating notary laws
• Malpractice - Professional misconduct

The Surety Bond

Every California notary must have a $15,000 surety bond.

Purpose:

• Protects the PUBLIC from notary misconduct
• Provides funds for valid claims
• Does NOT protect the notary

How it works:

1. Injured party files claim against the bond
2. Bonding company investigates
3. If claim is valid, bonding company pays (up to $15,000)
4. Bonding company may seek reimbursement from the notary

Exam Tip: The bond protects the public, not the notary. The notary may have to repay the bonding company.

Errors and Omissions Insurance

E&O insurance is optional but recommended:

• Protects the notary from financial loss
• Covers legal defense costs
• Pays valid claims
• The notary does NOT have to reimburse the insurer

Employer Liability

If a notary is employed:

• The employer may be vicariously liable for the notary's acts
• Applies when notary acts within scope of employment
• Does not eliminate the notary's personal liability

Damages

An injured party may recover:

• Actual damages (financial losses)
• Consequential damages (resulting losses)
• Potentially punitive damages (for willful misconduct)
• Attorney's fees (in some cases)

Table: Bond vs. E&O Insurance