Exercise of notarial functions is framed by particularly rigorous insurance and solidarity obligations, guaranteeing comprehensive financial protection for all clients of notariat.
To professional civil liability coverage is added solidarity mechanism without equivalent: collective guarantee among all notaries of France.
Obligation of professional civil liability insurance
According to article 13 of decree of 20 May 1955, all notaries are obliged to insure their professional civil liability. This obligation does not present, in itself, originality, insofar as it affects other professionals, with most diverse activities (doctors, lawyers, bailiffs...).
This insurance covers damages caused to third parties by errors, faults or negligence on part of notary or his staff. It intervenes in particular in case of dispute and prejudice.
Decree of May 20, 1955 (Art. 13): L'assurance RCP est obligatoire pour chaque office notarial et garantit l'indemnisation effective des préjudices causés aux tiers par négligence, omission ou erreur juridique.
Obligation of solidarity with all other members of profession: collective guarantee
Parallel to this traditional insurance, French notariat has organized collective guarantee, which covers pecuniary consequences of intentional faults and negligence, which cannot be taken charge of by classic insurance techniques. It is guarantee unique in its kind among legal professions.
This collective guarantee presents two devices:
- — regional guarantee funds, whose financial resources are provided by contributions borne by notaries dependent on region considered,
- — and Central guarantee fund, whose financial resources are provided by contributions borne by all notaries of France.
Thus, in case of damage caused to client by notary, in exercise of his professional functions, financial coverage of this damage is borne:
by company insuring professional civil liability risk, and if applicable, by Regional guarantee fund,
finally, and always if applicable, by National guarantee fund,
as last resort, if all these resources have not sufficed, by all notaries of France, among themselves.
Thanks to this two-tier mutual protection mechanism encompassing the entire profession, no client can be left without full indemnification in the event of financial harm attributable to a notary office.
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