Notary Bonds

A Required Bond for Most Notaries Public in the United States

A notary bond is a type of commercial surety bond required by most states as a condition of receiving or renewing a notary public commission. The bond protects the public from financial harm caused by errors, omissions, or misconduct committed by the notary in the performance of their official duties.

A notary bond does not protect the notary. It protects the people who rely on the notary's services. If a notary improperly witnesses a signature, fails to verify the identity of a signer, makes errors in notarizing documents, or engages in fraudulent activity, the person who is financially harmed can file a claim against the notary bond. If the claim is valid, the surety pays the claimant up to the bond amount. The notary is then responsible for reimbursing the surety.

At Grit Insurance Group, we issue notary bonds quickly and affordably. The process is simple, and most notary bonds can be approved and issued the same day you apply.
 

What Is a Surety Bond?

The Three Parties of a Surety Bond 

 What Does a Notary Bond Cover?

A notary bond covers financial losses caused by the notary's failure to properly perform their official duties. The specific duties covered by the bond vary by state but generally include verifying the identity of individuals signing documents, witnessing signatures and administering oaths, certifying that signers are acting voluntarily and understand what they are signing, properly recording notarial acts in a journal (where required by state law), and following all state laws governing notarial practice.

If a notary makes an error or commits misconduct in performing any of these duties and that error causes someone to suffer a financial loss, the affected party can file a claim against the bond.

It is important to understand what a notary bond does not cover. A notary bond does not protect the notary from personal liability. It does not cover intentional fraud by the notary (though it may pay the claimant, the notary is still liable to repay the surety). And it does not replace errors and omissions (E&O) insurance, which is a separate product that protects the notary from the financial consequences of unintentional mistakes.

Some states require both a notary bond and notary E&O insurance. Others require only the bond. Your state's notary commissioning authority will specify exactly what is required.

Notary Bond vs Notary Errors and Omissions Insurance

This is a common point of confusion, and it is worth getting clear on because many notaries need both.

A notary bond protects the public. If you make a mistake that costs someone money, they can file a claim against your bond and the surety will pay them. Then you owe the surety that money back. The bond does not protect you financially. It protects the person you harmed.

Notary errors and omissions (E&O) insurance protects you, the notary. If someone sues you for an unintentional error in your notarial duties, your E&O policy covers your legal defense costs and any damages up to your policy limits. Unlike a bond, you do not have to repay the insurance company for claims paid on your behalf.

Think of it this way: the bond is for their protection, the E&O insurance is for yours. Many experienced notaries carry both because each one covers a different risk.

 Surety Bonds vs Insurance

Which States Require Notary Bonds?

The majority of states require notaries public to carry a surety bond. However, the requirements vary significantly from state to state. Bond amounts, bond terms, and additional requirements like E&O insurance all depend on where you are commissioned.

Here are some examples of how notary bond requirements vary across states:

Utah requires a $5,000 notary bond for a four-year commission term. California requires a $15,000 notary bond. Texas requires a $10,000 notary bond. Florida requires a $7,500 notary bond. New York does not require a notary bond for traditional notaries but does require a $25,000 bond for electronic notaries. Colorado requires a $10,000 notary bond.

These are examples only. Bond amounts, commission terms, and additional requirements change over time and vary by state. Before applying for or renewing your notary commission, check with your state's commissioning authority (typically the Secretary of State's office) for the current requirements.

A few states do not require a notary bond at all. In those states, the notary may still choose to carry a bond voluntarily, but it is not a condition of the commission.

Your bond agent can confirm exactly what your state requires and help you get the right bond in place before your commission is issued or renewed.

How Much Does a Notary Bond Cost?

Notary bonds are among the least expensive surety bonds available. For most notaries with acceptable credit, the annual premium is typically between $25 and $100 per year, depending on the state, the bond amount, and the length of the commission term.

Some states allow you to purchase a notary bond for the full term of your commission (often four years) with a single upfront premium. Others require annual renewal. Either way, the cost is modest.

Notaries with credit challenges may pay slightly higher premiums, but notary bonds are generally available to applicants across a wide range of credit profiles. If your credit is less than perfect, do not assume you cannot get bonded. Talk to your bond agent about your options.

Many surety companies also offer notary bond packages that bundle the bond with E&O insurance at a combined rate that is lower than purchasing each separately. Ask about package options when you apply.

 How Much Do Contractor Bonds Cost?

 What Credit Score Is Needed for a Surety Bond?

How to Get a Notary Bond

Getting a notary bond is one of the simplest bond transactions in the surety industry. Here is how the process works.

Contact your bond agent and tell them what state you need the bond for and the required bond amount. At Grit, you can call us at (801) 505-5500 or request a quote online. We will confirm your state's requirements and match you with a surety market that issues notary bonds.

Complete a short application. Most notary bond applications are a single page. The surety will review your personal credit and basic information. There are no financial statements required and no lengthy underwriting process.

Receive your bond. Once approved, the surety issues your notary bond certificate. You submit this certificate to your state's commissioning authority as part of your notary application or renewal. In most cases, the bond can be issued the same day you apply.

File your bond with the state. Your state will require you to submit the original bond certificate (or a copy, depending on the state) along with your notary commission application. Once the bond is filed and your application is approved, you are commissioned to act as a notary public.

 Notary Bond Renewals

Notary bonds must be maintained for the duration of your notary commission. Depending on your state, this means either renewing your bond annually or purchasing a bond that covers the full commission term upfront.

If your bond is set up on an annual basis, your surety will send you a renewal notice before the bond expires. Do not let your bond lapse. In most states, practicing as a notary without an active bond is a violation of state law and can result in the suspension or revocation of your commission.

If you are renewing your notary commission for a new term, you will need a new bond for the new commission period. Your bond agent can handle the renewal and ensure there is no gap in coverage between your old bond and your new one.

What Happens If a Claim Is Filed Against Your Notary Bond?

If someone believes they suffered a financial loss due to your actions as a notary, they can file a claim against your bond. Here is what happens next.

The surety receives the claim and investigates. They review the circumstances, the documentation, and the applicable state laws. If the claim is valid, the surety pays the claimant up to the bond amount.

Then the surety comes to you for reimbursement. This is the indemnity obligation that comes with every surety bond. The surety paid on your behalf, and you are responsible for paying them back.

This is why the notary bond is not insurance for the notary. It is a guarantee to the public. If a claim is paid, the financial burden ultimately falls on you. This is also why many notaries choose to carry E&O insurance in addition to their bond, because E&O insurance does protect the notary from the financial consequences of unintentional errors.

The best way to avoid bond claims is to follow your state's notary laws carefully, maintain a thorough notary journal, verify the identity of every signer, never notarize a document without the signer being physically present (unless your state authorizes remote online notarization), and never notarize a document you have a personal interest in.