Notary Bonds and E&O Policies

A notary surety bond is a type of financial obligation that exists to protect the public from harm that you may cause in your role as a public servant. Notary bonds protect clients by providing financial guarantees against errors in notary services. There are three parties to a surety contract:

principal: that’s you, the notary public surety: the bonding company (e.g. Travelers or Merchants Bonding) obligee: the party that’s protected by the bond (the people of California) If you harm the public, a claim can be made on the bond. The surety will pay the claim up to the bond penalty amount ($15,000), then they will attempt to recover what they have paid from you. In this way, a bond is a little bit like a credit card; the surety will pay for your purchases (claims), but then you need to pay the bill.

A notary errors and omissions insurance policy helps protect you from a) Claims made on the bond, and b) Lawsuits that are brought against you. Subject to policy limits and provisions, the E&O policy will provide a legal defense and/or pay damages to third parties, including reimbursement for money paid by the surety in connection with your bond. It is important to note that the bond primarily protects consumers, not the notary themselves.

In California, the notary bond is required. The errors and omissions policy is optional, but strongly recommended.

What is a Notary Surety Bond?

A notary surety bond is a type of surety bond that serves as a financial guarantee, ensuring that notaries perform their duties responsibly and in accordance with the law. This bond protects the public from financial losses caused by a notary’s mistakes or misconduct. Typically mandated by state law, a notary surety bond is a prerequisite for notaries before they can begin their practice. By holding notaries accountable, these bonds help maintain trust and integrity in notary services.

Notary Bond Requirements

Notary bond requirements can vary significantly from state to state. Generally, most states mandate that notaries obtain a surety bond before they can start practicing. The bond amount usually ranges between $5,000 and $25,000, depending on the state. These bonds are typically valid for a period of 4-6 years and must be renewed before they expire. Additionally, notaries are often required to file their bond with the county clerk’s office within a specific timeframe, usually within 30 days of their commission start date. Ensuring compliance with these requirements is crucial for notaries to legally perform their duties.

Obtaining a Notary Bond

To obtain a notary bond, notaries can reach out to an insurance or surety company that is licensed in their state. Many notaries opt to purchase a complete notary supply package, which often includes the bond. When applying for a bond, notaries need to provide personal and professional information, such as their name, address, and notary commission number. While the bond is usually issued electronically, the original document may also be mailed to the notary. This process ensures that notaries have the necessary financial protection in place to perform their duties.

Notary Errors and Omissions (E&O) Insurance

Notary errors and omissions (E&O) insurance is designed to protect notaries from financial harm resulting from unintentional mistakes or oversights in their notarial duties. This type of insurance covers the cost of legal defense, settlements, or judgments if a notary is sued for negligence. Unlike a notary surety bond, which protects the public from financial losses caused by a notary’s errors or misconduct, E&O insurance provides financial protection for the notary themselves. By covering legal expenses and potential damages, E&O insurance offers an additional layer of security for notaries.