California Notary Bonds and E&O Policies

You are required by California law to file a $15,000 notary surety bond with your county when you take your oath to be a Notary Public. The bond protects the public from your violating state statutes and laws.

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. 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 protects 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.

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