A notary bond is a surety bond that guarantees payment to anyone who suffers financial harm because of a notary’s mistake or misconduct. Most states require you to buy one before your commission becomes active. The bond protects the public, not you. If the surety company pays a claim out of your bond, you are contractually required to pay the surety back.
How a Notary Bond Works
Three parties are involved. You, the notary, are the principal. The state (or similar public entity) is the obligee, meaning it requires the bond on behalf of the people you’ll serve. The surety company issues the bond and guarantees payment if you fail to do your job properly.1American Society of Notaries. Notary Bond (Surety)
The dollar figure on the bond is not what you pay. It’s the maximum the surety will pay on a valid claim. Picture it as a ceiling on the financial protection available to the public through your bond. If someone suffers a $5,000 loss because of your notarial error and your bond is $10,000, the surety can pay up to that $10,000 limit.
Who the Bond Actually Protects
This is the part that catches new notaries off guard. A bond looks like insurance, is sold alongside insurance, and involves paying a premium to a company that covers losses. It works in the opposite direction. Insurance protects the person who buys the policy. A notary bond protects everyone except the notary.1American Society of Notaries. Notary Bond (Surety)
When you buy the bond, you sign an indemnity agreement. That agreement makes you personally responsible for reimbursing the surety for every dollar it pays on a claim. So the bond is really a guarantee that money will be available for the claimant right away. The financial burden ultimately lands on you.
Claims tend to follow a pattern. A notarization is performed improperly, a document gets rejected or rendered invalid, and someone loses money as a result. A real estate closing might fall through because of a defective acknowledgment, for instance. The bond ensures a financial backstop for the person who got hurt, even if the notary can’t personally afford to pay.
Bond Amounts and What You’ll Pay
Every state that requires a notary bond sets its own amount. Required bond amounts range from as low as $500 to as high as $50,000. Most states fall somewhere between $5,000 and $15,000. Some states require higher bonds for notaries who perform remote online notarizations.
The premium you pay is a fraction of the bond amount. For most notaries, the cost runs between $35 and $55 per year, and many surety companies sell bonds covering the full commission term in one payment. A notary in a state requiring a $5,000 bond might pay $35 for a four-year term, while someone in a state with a $25,000 requirement might pay around $45. Credit history can affect pricing, but because bond amounts are relatively low, most applicants qualify at standard rates.
Expect a government filing fee on top of the premium when you submit your bond to the state. These fees vary by jurisdiction and typically run between $40 and $60.
Errors and Omissions Insurance Is Different
Errors and omissions (E&O) insurance is the product that actually protects the notary. It covers defense costs, settlements, and judgments when someone sues you for an unintentional mistake during a notarization. Unlike a bond payout, E&O claims don’t require reimbursement from the notary. Some states require E&O coverage in addition to a bond, especially for remote online notaries, but many do not.1American Society of Notaries. Notary Bond (Surety)
Even where it’s optional, E&O coverage is worth serious consideration if you notarize documents regularly. The bond will not step in to defend you, and anything paid out comes back to you through the indemnity agreement.
How Claims Get Paid
Someone who believes they suffered financial harm from your notarial act can file a claim directly with the surety company that issued your bond. The claimant typically needs to provide documentation showing what happened, how the notarization was defective, and what financial loss resulted.
The surety investigates by reviewing documentation from both sides. If it determines the claim is valid, it pays the claimant up to the bond’s maximum amount. You then owe the surety that same amount under the indemnity agreement.1American Society of Notaries. Notary Bond (Surety)
A bond claim is not a lawsuit against you, though a lawsuit can happen separately. The bond provides a faster path to compensation for the injured party. If the damages exceed your bond amount, the claimant can still pursue you personally or through the courts for the difference. E&O insurance becomes especially important in those situations, since the bond only covers a fixed amount and everything above that comes out of your own pocket.
Buying, Filing, and Keeping the Bond Active
You purchase a notary bond from a surety company, an insurance agency, or a notary supply provider. The process is simple: fill out a short application, pay the premium, and receive your bond document. Many providers sell bonds online and deliver them within a day or two.
Buying the bond is only half the job. You must file it with the appropriate state authority, which in most states is the Secretary of State’s office or the county clerk. Your commission is not active until the bond is properly filed, and performing notarizations before that can result in fines and revocation of your commission.
Commission terms vary by state. Most states issue four-year commissions, though terms range from two to ten years. Your bond must remain active for the entire commission term, and letting it lapse generally stops you from performing any notarial acts until the issue is resolved. In some states, a lapsed commission means starting the entire application process over.