Two terms come up as soon as you apply for a notary commission: surety bond and errors and omissions (E&O) insurance. They sound alike, but they protect different people, and notary exams expect you to know which is which.
The surety bond protects the public
A notary bond is a guarantee that money will be available to someone harmed by the notary's misconduct or mistakes. Florida's law describes the bond as payable to any individual harmed as a result of a breach of duty by the notary acting in an official capacity.
Key points about bonds:
- Many states require one before a commission is issued. Florida requires a $7,500 bond, and Arizona a $5,000 bond.
- Some states don't require a bond at all. Rhode Island's notary law, for example, does not require one, and Wyoming makes bond or insurance voluntary.
- A few states allow a choice. Louisiana, for example, accepts either a $10,000 bond or at least $10,000 of E&O insurance.
- The surety's liability is capped at the bond amount. Missouri's law, for instance, limits the surety's total liability across all claimants to the bond amount.
Related: What to Expect on Your State’s Notary Public Exam
The notary is still personally liable
This is the part that surprises people. The bond does not shield the notary. State laws make the notary personally liable for damages caused by their official misconduct. Virginia's statute puts it simply: a notary public is liable for all damages proximately caused by official misconduct. A bond simply means the injured person has another source of payment, up to the bond amount.
E&O insurance protects the notary
Errors and omissions insurance is coverage the notary buys to protect themselves. If a notary is sued over a mistake, such as a missed step in identifying a signer or an incorrect certificate, the policy can cover legal defense costs and damages up to its limits. In many states it is optional. Florida, for example, refers to it as optional E&O insurance offered through bonding agencies.
Employers can be liable too
Some states also hold an employer responsible for a notary employee's misconduct in certain circumstances, such as when the employer directed or knew about the wrongful conduct. Virginia and Missouri both address this in their notary laws.
Quick comparison
- Bond: often required; protects the public; limited to the bond amount; the notary remains liable.
- E&O insurance: usually optional; protects the notary; covers defense and damages up to the policy limit.