Notary Bond, Insurance & Liability FAQs

A notary surety bond is a form of insurance that protects the public (not the notary) from financial harm caused by a notary's negligence or misconduct. If a notary makes an error and a claimant is awarded damages, the bond company pays the claim — and then the notary must reimburse the bond company. Bond amounts range from $500 to $25,000 depending on the state.

E&O insurance protects the notary personally from the cost of defending lawsuits and paying judgments arising from honest notarial mistakes. Unlike a surety bond (which protects the public), E&O protects the notary's own finances. It is not required by most states but is strongly recommended — especially for active loan signing agents and RON notaries.

A standard notary E&O policy with $25,000 in coverage typically costs $40–$80 per year. Policies covering $100,000 or more are available for $100–$200 per year. Loan signing agents generally purchase higher coverage ($100,000+) because real estate transaction mistakes can be very costly.

Yes. A notary who negligently or fraudulently notarizes a document can be personally liable for damages. Common situations include notarizing without the signer present, failing to properly verify identity, or improperly certifying a copy. E&O insurance helps cover defense costs and settlements.

Grounds for commission revocation include: notarizing without the signer present (improper notarization), identity fraud or forgery, practicing unauthorized law, charging excessive fees, failure to maintain a journal (where required), criminal conviction for certain offenses, and allowing unauthorized use of the notary seal.