Notary surety bonds

A notary surety bond is a common requirement for professionals serving as notaries public. It's designed to protect your customers against financial loss due to improper conduct or negligence during the notarization process. In many states, obtaining a notary public bond is legally required to submit an application or maintain a notary commission.

A surety bond is an agreement between three parties:

• Your business (the principal)
• Your client (the obligee)
• A bonding company (the surety)

It's important to note, notary surety bonds aren't a form of insurance for the notary public. Rather, they ensure that if a notary makes a mistake or commits fraud that harms someone else, the affected party can file a claim for damages. Without this protection, clients would be more vulnerable to financial losses.

When a notary public is bonded, they're backed by a surety company that guarantees to pay claims made by clients who suffered damages due to the notary’s errors, negligence, or misconduct. If a claim is filed and deemed valid, the surety company will reimburse your client, up to the amount of the bond.

However, the notary is ultimately responsible for reimbursing the surety for any paid claims. This means notary bonds work similarly to lines of credit, with the surety company paying upfront and the notary repaying the amount later.

A notary surety bond protects your customers from financial harm caused by mistakes or dishonest notarial acts, such as:

• Notarizing a document without witnessing a signature
• Failing to verify a signer’s identity
• Knowingly notarizing forged or fraudulent documents

But, this type of business protection doesn't protect the notary. For that, you'd need errors and omissions (E&O) insurance, which is also known as professional liability insurance. E&O helps cover legal fees and settlements if you're accused of negligence or mistakes in your notarial duties– even if no bond claim is filed.

In most states, notaries public must secure a surety bond before they can be commissioned. However, the exact bond amount and other specific requirements will vary by state, so you should check with your local secretary of state, county clerk, or commissioning authority to align with state, city, and county laws.

Even in states where notary bonds aren’t required, having one can help build client trust and demonstrate professionalism.

Notary public bond requirements will vary by state, with some examples being:

Although not always legally required, it's highly recommended for notaries to purchase both a surety bond (to meet state requirements and protect clients) and errors and omissions insurance (to protect themselves and their business).

E&O insurance can help cover legal costs if a notary is sued for negligence – even if no wrongdoing is found. For example, if you accidentally notarize a document incorrectly and the client sues you, an errors and omissions policy could help pay for your defense.

Are you ready to safeguard your notary business with commercial insurance or a business bond? Insureon helps notaries public find affordable insurance coverage from top-rated insurance carriers with one easy online application today.

If you need help deciding on the best policy or coverage type, our licensed insurance agents can offer guidance that best suits your business's needs. Once you find the right policy, you can begin coverage and get a certificate of insurance in less than 24 hours.