Key Takeaways
- Notaries are personally liable for negligence or misconduct
- No bond is required but liability still exists
- E&O insurance can provide protection
- Injured parties may sue for damages
- Employer may also be liable for employee notary actions
Last updated: January 2026
Civil Liability
In addition to criminal penalties and administrative sanctions, notaries may be held personally liable in civil court for damages caused by their negligence or misconduct.
Basis for Civil Liability
| Cause of Action | Description |
|---|---|
| Negligence | Failure to exercise reasonable care |
| Breach of Duty | Violation of notarial responsibilities |
| Fraud | Intentional deception causing harm |
| Unauthorized Practice of Law | Providing legal advice causing harm |
No Surety Bond in NC
| Factor | Effect |
|---|---|
| Bond Not Required | NC does not require surety bond |
| No Bond Protection | Injured parties cannot claim against bond |
| Personal Liability | Notary's personal assets at risk |
Types of Damages
Injured parties may seek:
| Damage Type | Description |
|---|---|
| Compensatory Damages | Actual financial losses |
| Consequential Damages | Indirect losses from the misconduct |
| Punitive Damages | Punishment for egregious conduct |
| Attorney's Fees | In some cases |
Common Civil Claims
| Scenario | Potential Claim |
|---|---|
| Notarizing forged signature | Damages from fraudulent transaction |
| Failing to verify ID, fraud occurs | Losses from identity theft |
| Improper notarization invalidates deed | Real estate transaction losses |
| Providing legal advice, bad outcome | Unauthorized practice of law damages |
Protection Through E&O Insurance
Errors and Omissions (E&O) insurance provides:
| Protection | Benefit |
|---|---|
| Legal Defense Costs | Attorney fees for defending claims |
| Settlement Costs | Payment of negotiated settlements |
| Judgments | Payment of court-ordered damages |
| Peace of Mind | Financial protection |
Employer Liability
| Situation | Liability |
|---|---|
| Notary is employee | Employer may be vicariously liable |
| Within scope of employment | Employer shares responsibility |
| Independent contractor | Usually contractor bears own liability |
Reducing Civil Liability Risk
| Best Practice | Protection |
|---|---|
| Follow all procedures | Demonstrates reasonable care |
| Maintain journal | Evidence of proper conduct |
| Verify identification carefully | Prevents fraud claims |
| Never give legal advice | Avoids UPL claims |
| Get E&O insurance | Financial protection |
| Keep commission current | Demonstrates professionalism |
Key Points for the Exam
- Personal liability: Notaries can be sued personally
- No bond: NC doesn't require bond, so no bond protection
- E&O insurance: Recommended for protection
- Employer liability: May exist for employee notaries
- Best protection: Follow proper procedures always
Test Your Knowledge
Why is Errors and Omissions (E&O) insurance recommended for NC notaries?
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B
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D
Test Your Knowledge
If an employee notary makes an error while notarizing for their employer, who may be liable?
A
B
C
D