Of course, it will pay the amount against the defendant up to the limit of the policy. However, there are two overriding factors that reduce the usefulness of this insurance. First is the payoff ceiling. By its very nature, insurance will only pay assessed damages up to a certain amount. Yet the liability has no limit.
Notaries can be and have been sued for millions of dollars.
Obviously, a notary cannot rely on insurance as an adequate safety net. The second limitation is that errors and omission insurance covers only what the insurance company determines is accidental, or negligent, misconduct. If a court determines that the misconduct was intentional, even if not done with criminal intent, the notary may not be covered. Insurance vs. Bonding Oregon does not require notaries to post a bond. If you have filed a bond and are required to pay damages, the bondsman pays for you out of the bond amount, but you still have to pay the bondsman back.