Key Takeaways
- Surety bond protects the public, not the notary
- Errors and Omissions insurance protects the notary
- Good-faith refusals are generally protected
- Following proper procedures provides protection
- Documentation in journal provides evidence of proper conduct
Last updated: January 2026
Liability and Protection for Montana Notaries
Understanding liability and protection is essential for Montana notaries.
The Surety Bond
What the Bond Does
| Feature | Details |
|---|---|
| Amount | $25,000 |
| Protects | The PUBLIC |
| From | Notary errors or misconduct |
| Claims | Public can file claims against bond |
What the Bond Does NOT Do
| Feature | Details |
|---|---|
| Does NOT protect | The notary |
| Surety recovery | Surety company may seek reimbursement from notary |
| Personal liability | Notary remains personally liable |
Errors and Omissions (E&O) Insurance
E&O insurance is optional but protects the notary:
| Feature | Details |
|---|---|
| Protects | The NOTARY |
| Coverage | Unintentional errors or omissions |
| Defense costs | May cover legal defense |
| Not required | But strongly recommended |
E&O vs. Surety Bond
| Feature | Surety Bond | E&O Insurance |
|---|---|---|
| Required | YES | No |
| Protects | Public | Notary |
| Amount | $25,000 | Varies by policy |
| Notary recovery | None | May pay claims |
Protection Through Proper Practice
Following proper procedures provides protection:
| Practice | Protection |
|---|---|
| Verify identity | Defense against fraud claims |
| Complete journals | Evidence of proper procedure |
| Use correct certificates | Defense against claims of wrong act |
| Refuse when appropriate | Good-faith refusals protected |
| Keep records | Documentation supports your actions |
Good-Faith Refusals
Montana law protects notaries who refuse notarizations in good faith:
- Reasonable belief identity not verified
- Suspicion of fraud or coercion
- Signer appeared incompetent
- Following proper procedure
When Liability May Arise
| Situation | Potential Liability |
|---|---|
| Notarizing without signer present | Fraud, negligence |
| Failing to verify identity | Negligence |
| Using wrong certificate | Error, negligence |
| Ignoring red flags | Negligence |
| Providing legal advice | UPL, malpractice |
Protecting Yourself
Best Practices
| Practice | Benefit |
|---|---|
| Maintain detailed journal | Evidence of proper conduct |
| Keep copies of certificates | Documentation |
| Follow all procedures | Standard of care |
| Obtain E&O insurance | Financial protection |
| Stay educated | Current on requirements |
If a Claim Arises
- Do not admit fault — Contact insurance/attorney
- Gather documentation — Journal, certificates
- Notify surety company — If claim filed against bond
- Notify E&O carrier — If you have coverage
- Consult attorney — For legal guidance
On the Exam
- Bond protects public: NOT the notary
- E&O protects notary: Optional but recommended
- Good-faith refusals: Generally protected
- Documentation key: Journal provides evidence
- Surety recovery: Surety can seek reimbursement from notary
Test Your Knowledge
What is the difference between the surety bond and Errors & Omissions insurance?
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Test Your Knowledge
If a claim is paid from a notary's surety bond, what can the surety company do?
A
B
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D
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