What happens if a notary does not have errors and omissions insurance and a lawsuit is filed?

If a notary does not have errors and omissions insurance and faces a lawsuit, they would be personally responsible for their defense. This means that all legal fees and costs associated with the lawsuit would fall on the notary, placing a significant financial burden on them. Errors and omissions insurance is designed to protect notaries by covering legal costs associated with claims of negligence, mistakes, or omissions in the course of their duties. Without this insurance, the notary must bear all the financial risks associated with potential lawsuits, which highlights the importance of having such coverage in place.

In the context of the other options, the state does not automatically cover legal fees for notaries in the event of a lawsuit. The bond that notaries are required to obtain is primarily meant to protect the public and does not cover legal fees related to lawsuits against the notary. Exemption from lawsuits is also not applicable, as notaries are liable for their actions while performing notarial duties and can be sued if their actions are deemed negligent or improper.