Notary Bond

A notary bond is a form of license and permit bond that a state requires an individual to post before it will issue or renew a notary public commission. Its purpose is to protect the public — not the notary — against financial harm arising from a notary's improper act, such as notarizing a signature the signer never made, failing to verify identity, or otherwise breaching the duties of the office. If a member of the public suffers a loss and prevails in a claim, the surety pays up to the bond's penal sum, which is set by state law and commonly ranges from about $5,000 to $15,000 (a few states require more or none at all).

For the notary and any small business that has staff notarize documents, the critical nuance is that a notary bond is not personal protection. Because a surety bond is a guarantee rather than insurance, any amount the surety pays on a valid claim is recoverable from the notary under the indemnity agreement. In other words, the bond satisfies the public and the state, but the notary remains financially on the hook. That is why notaries who want coverage for their own defense costs and liability typically purchase a separate errors-and-omissions policy — a form of professional liability — in addition to the required bond.

The practical takeaway for a business owner: the bond is a licensing formality that is inexpensive (often $50 or less for a multi-year term) and rarely optional where required, but it does nothing to shield the notary or the employer from out-of-pocket loss. If accurate, error-free notarizations matter to your operations — title, lending, or legal document work, for instance — pair the bond with E&O coverage. Requirements, penal sums, and terms vary widely by state, so always confirm the current rule with your Secretary of State before commissioning or renewing.