Notary Bonds and Insurance FAQs

What is the difference between notary bonds and Errors & Omissions insurance? Are notary bonds and surety bonds the same thing?

First, bonds protect the public; E&O insurance protects you. 

Notary Bonds and Insurance FAQs

What is a surety bond?

First, a notary public bond is the same as a surety bond. The notary public bond is not an insurance policy for the notary public. The bond is designed only to provide a limited source of funds for paying claims against the notary public. The notary public remains personally liable to the full extent of any damages sustained and may be required to reimburse the bonding company for sums paid by the company because of misconduct or negligence of the notary public.

What is E&O Insurance?

Errors & Omissions insurance (E&O) is liability coverage built to protect your personal and professional assets. E&O insurance protects you in case you make a mistake, causing your client to suffer financial harm. E&O insurance has a no deductible. 

Without E&O insurance, the notary public remains personally liable to the full extent of any damages sustained by the client. Most likely, the notary will be required to reimburse the bonding company out of pocket.

State-required notary bonds do not protect the notary. This is a common misconception. 

Is E&O insurance required by law? No, it’s not, but why would you risk losing your home? Protecting yourself with E&O insurance guarantees YOU financial protection and peace of mind.

alt=" "

How Do Surety Bonds Work?

Surety

First, you must purchase a bond to become a notary. This surety bond is purchased to protect the consumer; that is, your clients. If you make a mistake which financially harms one of your clients, they can file a claim against your bond. If their claim is valid, they can be compensated up to the bond amount.  

Principal

This is you! When you purchase your bond, you agree to enter into a partnership with the surety. Unfortunately, this partnership means that you are financially liable to the surety. 

Obligee

This is your state. Your state requires that the principal purchase a bond to obtain a notary commission or license. In addition to you, your states enters into an agreement with the surety. This agreement means that if a state citizen is harmed, the surety will compensate the injured party. 

E&O Insurance

E&O insurance protects YOU. If you have E&O insurance, your insurance will cover the compensation paid by the surety, up to your policy amount. Of course, we HIGHLY RECOMMEND E&O insurance.


Notary Bonds and Insurance FAQs Continued

How much does a notary bond cost? What bond amount does my state require?

The price varies depending on the bond company and the bond amount your state requires. On Notary.net, a Travelers California bond for $15,000 costs $38, while a Tennessee bond for $10,000 costs $30. 

Select your state from the States tab for state-specific info.