Short answer: A notary bond protects the public, not you. Many states require one, such as $15,000 in California, $10,000 in Texas and $7,500 in Florida, and if the bond pays a claim, the surety can make you repay it. Notary errors and omissions (E&O) insurance is optional in most states and protects you, paying for your defense and covered claims from mistakes.
The bond: required, but not for your benefit
States that require notary bonds set the amount by statute:
- California: $15,000 under Government Code §8212
- Texas: $10,000, approved by the Secretary of State under Government Code ch. 406. See the Texas SOS notary information.
- Florida: $7,500 under Fla. Stat. §117.01
A bond is a guarantee to the public. If someone is harmed by your misconduct or negligence as a notary, they can claim against the bond up to its amount. The surety pays and then seeks reimbursement from you. See surety bond vs. insurance.
E&O: protection for the notary
Notary E&O insurance generally:
- Pays covered damages if you make an honest mistake, such as failing to verify identity correctly or missing a required journal entry
- Pays for legal defense, often the biggest cost even when the claim has no merit
- Is in addition to the bond, and the insurer usually doesn't seek repayment from you for covered claims
Limits are chosen by the notary. Policies vary on whether defense costs reduce the limit and on exclusions for intentional misconduct.
Mobile notaries and signing agents
Loan signing agents often need E&O to work with title and escrow companies, and many companies set a minimum limit in their vendor requirements. If you travel to signings, check whether your personal auto policy is enough for business driving, and consider general liability if you meet clients at their homes or offices.
Employer-paid notaries
If your employer pays for your commission and bond, ask whether its E&O or professional liability policy covers your notarial acts and what happens if you notarize outside work.
Bottom line
Buy the bond your state requires, and seriously consider E&O. The bond protects the public, while E&O protects you.
Questions? Contact Alishahi Insurance or call (877) 711-4545. Vea surety bonds.
Frequently asked questions
What is the difference between a notary bond and notary E&O?
A bond protects the public and the surety can seek repayment from you; E&O protects you and pays defense and covered claims.
How much is the notary bond in California?
$15,000 under Government Code §8212.
What notary bond amount does Texas require?
$10,000, approved by the Secretary of State.
Do loan signing agents need E&O?
Many title and escrow companies require it, often with minimum limits.
Alishahi Insurance · 439 N Canon Dr, Penthouse, Beverly Hills, CA 90210 · (877) 711-4545 · CA License #4348151. General information only. This isn't legal, tax or financial advice or a coverage determination. Coverage depends on policy language and underwriting, and rules vary by state.