Notary bond vs. Notary E&O insurance
Surety and fidelity underwriter, attorney and author of The Contractor's Guide to Surety Bonds. Updated September 2026.
They are often sold together and often confused. One is a guarantee to the public that you will perform properly; the other is insurance that pays when you do not. A notary who understands the difference carries both.
| Notary bond | Notary E&O insurance | |
|---|---|---|
| Who it protects | The public and the State | The notary |
| Required by law | Yes, in 28 states and D.C. | Only for remote notaries in Florida and Montana |
| If a claim is paid | The notary must reimburse the surety | Nothing to repay |
| Defense costs | Not provided | Provided in most forms |
| Amount | Set by statute, $500 to $50,000 | Chosen by the notary, $10,000 to $100,000 or more |
| Term | The commission term, paid once | The commission term or annual |
| Dishonest acts | Covered as to the public; recoverable from the notary | Excluded |
| Filed with the state | Yes | No, except where required |
The reimbursement obligation is the whole point
A surety bond is not a transfer of risk. The surety guarantees the notary's performance to the obligee and, when it pays, is subrogated to the claimant's rights against the notary and has an independent right of indemnity under the application the notary signed. A $10,000 claim paid on a bond is a $10,000 debt the notary owes the surety the next day. E&O insurance is a transfer of risk: the insurer pays and the notary owes nothing.
Why the state requires the bond and not the insurance
The state's interest is in the public, not the notary. A bond gives every person who relies on a notarial act a solvent, regulated party to look to for the first dollars of loss, without regard to whether the notary can pay. That is a public-protection device. Whether the notary is protected is the notary's own concern, which is why E&O is voluntary nearly everywhere and why many notaries, misled by the word "bond," go without it.
Carry both
The bond is mandatory where required and costs a few dollars a year. The E&O policy is what keeps a single honest error in a deed acknowledgment from becoming a personal judgment. Bond purchasers on this platform receive a discounted E&O rate; both applications are in one dialog.