Remember, notary bonds protect the public, and they are required in many states. If your actions result in harm to the public, a claim can be made on the bond. If a valid claim is made on the bond, the surety company will pay the claim and you will be required to reimburse them. In California, for example, the bond limit is $15,000, and that money would come out of your pocket.
The good news is that a notary errors and omissions (E&O) policy will step in to defend you. If you have this type of policy, it could pay the claim on your behalf, protecting your assets in the process.