Key Takeaways
- The $10,000 surety bond protects the PUBLIC, not the notary
- Notaries can be personally liable for negligence or misconduct
- Errors and Omissions (E&O) insurance protects the notary
- E&O insurance is optional but recommended for active notaries
- Criminal liability can result from intentional misconduct
Last updated: January 2026
Liability and Protection
Understanding liability is crucial for protecting yourself and serving the public responsibly.
Surety Bond vs. E&O Insurance
| Feature | Surety Bond | E&O Insurance |
|---|---|---|
| Required? | YES | No (optional) |
| Amount | $10,000 | Varies |
| Protects | The PUBLIC | The NOTARY |
| Pays | Public claims | Notary's defense/settlement |
| Repayment | Notary must repay | No repayment needed |
How the Surety Bond Works
- Public is harmed by notary error/misconduct
- Claim filed against the bond
- Bonding company pays claim (up to $10,000)
- Notary must repay the bonding company
- Notary remains liable for amounts over $10,000
Errors & Omissions Insurance
E&O insurance is optional but valuable:
| Benefit | Description |
|---|---|
| Defense costs | Pays legal fees |
| Settlements | Pays settlement amounts |
| Judgments | Pays court judgments |
| Peace of mind | Protection from mistakes |
When You Might Be Liable
| Situation | Potential Liability |
|---|---|
| Negligent ID verification | Civil damages |
| Improper certificate | Document invalidation |
| Notarizing incomplete docs | Civil and criminal |
| Notarizing for interested party | Commission loss + liability |
| Criminal conduct | Criminal charges + civil |
Types of Liability
| Type | Description | Consequence |
|---|---|---|
| Civil | Sued for damages | Pay money damages |
| Criminal | Charged with crime | Jail/fines |
| Administrative | Commission action | Revocation/suspension |
SB693 Enhanced Liability
Senate Bill 693 increased liability for notaries:
| Conduct | Criminal Classification |
|---|---|
| Notarizing without appearance | Class A misdemeanor |
| Same, involving real property | State jail felony |
| Failure to maintain records | Revocation grounds |
Protecting Yourself
| Protection | Action |
|---|---|
| Follow the law | Know and comply |
| Keep good records | Journal everything |
| Verify ID carefully | Never skip this |
| Complete certificates | No blanks |
| Consider E&O | Insurance protection |
| Stay current | Update knowledge |
Common Mistakes Leading to Liability
| Mistake | Consequence |
|---|---|
| Rushing verifications | Fraud gets through |
| Incomplete journals | No evidence of care |
| Notarizing for family | Conflict of interest |
| Legal advice | UPL charges |
| Expired commission | All acts void |
On the Exam
Liability questions focus on:
- Bond protects: The public, not the notary
- Bond repayment: Notary must repay
- E&O insurance: Optional, protects notary
- Criminal liability: SB693 enhanced penalties
Test Your Knowledge
Who does the Texas notary surety bond protect?
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B
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D
Test Your Knowledge
What type of insurance protects the NOTARY from liability claims?
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B
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D
Test Your Knowledge
Is Errors and Omissions insurance required for Texas notaries?
A
B
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D