Why Your Notary Bond Isn't Enough
If you're a notary public or a signing agent, you probably already have a surety bond. It's required in most states to get your commission. But here's the thing most notaries don't realize until it's too late: a surety bond protects the public, not you. If a member of the public files a claim because you made an error, the bond pays them—but then you have to repay the bonding company. You're on the hook for the full amount.
Notary errors and omissions (E&O) insurance, on the other hand, protects your personal finances. It covers legal defense costs and settlements if a client sues you for a mistake—like missing a signature, notarizing an incomplete document, or failing to properly identify a signer. And unlike a bond, you don't have to repay the insurer for covered claims.
This guide walks you through the differences, how much coverage you need, and what it costs.
Bond vs. E&O: What's the Difference?
The confusion is understandable. Both are often sold together, and both involve claims from the public. But they serve completely different purposes.
- Notary surety bond: Required by most states. It guarantees that you'll perform your duties honestly. If you commit fraud or violate the notary law, the bond pays the victim—but you must reimburse the surety company. It's basically a line of credit, not insurance.
- Notary E&O insurance: Optional but strongly recommended. It covers unintentional errors—like forgetting to witness a signature, backdating a document, or mishandling a loan signing. The insurer pays defense costs and settlements on your behalf, and you don't pay it back.
In short: the bond protects the public from your misconduct; E&O protects you from your mistakes. If you do loan signings or handle sensitive documents, you need both.
What Does Notary E&O Insurance Cover?
Notary E&O policies typically cover:
- Errors and omissions: Mistakes like failing to properly identify a signer, notarizing an incomplete document, or missing a required entry in your notary journal.
- Breach of duty: Claims that you failed to perform your notarial duties correctly.
- Defense costs: Legal fees, court costs, and settlements, even if the claim is groundless.
- Loan signing errors: For signing agents, coverage often extends to mistakes in handling loan documents, like missing a signature line or incorrect notarization.
What's not covered? Intentional fraud, criminal acts, or claims covered by your general liability policy (e.g., bodily injury or property damage).
How Much E&O Coverage Does a Signing Agent Need?
For most notaries, a $25,000 to $100,000 policy limit is enough. Why? Because the financial harm from a notarial error is usually limited to the value of the transaction or the cost to fix the document. For a typical loan signing, a mistake might cost a few thousand dollars to correct—not millions.
However, if you're a signing agent handling high-value real estate transactions (e.g., $1 million+ loans), you may want $100,000 or even $250,000 in coverage. Some title companies or lenders may require a minimum limit, often $25,000 or $50,000, before they'll hire you.
If you also run a business (e.g., a mobile notary service), consider a business owner's policy that bundles E&O with general liability—but that will cost more (around $500/year through carriers like Thimble).
How Much Does Notary E&O Cost?
Good news: notary E&O is cheap. Annual premiums typically range from $20 to $100 for a basic policy with $25,000 to $100,000 in coverage. Yes, that's less than a dinner out for two.
Costs vary by:
- Coverage limit: Higher limits cost more, but the jump from $25k to $100k is usually only $20–$30.
- State requirements: Some states have higher bond amounts, but E&O is priced nationally.
- Claims history: If you've had a claim, expect a higher rate.
- Bundling: Some carriers offer discounts if you buy both the bond and E&O together.
For comparison, other professions pay much more: nurse practitioners average $990–$2,000/year, therapists around $363–$765/year, and registered nurses $100–$150/year. Notaries get off easy.
Where to Buy Notary E&O Insurance
You can buy notary E&O from several reputable carriers. Here are a few options:
- Berxi (Berkshire Hathaway): Offers E&O for notaries with $0 deductible and defense costs outside limits. Get a quote online quickly.
- NSO/HPSO: Known for healthcare professionals, but also offers notary E&O. Coverage is portable and includes license defense.
- Proliability (Mercer): Offers up to $1M/$3M occurrence policies via Liberty Mutual. Good for high-limit needs.
- CM&F Group: Insures notaries and other professionals since 1947. Policies are portable and include telemedicine coverage (if applicable).
- CPH & Associates: Provides occurrence policies (no tail needed) with State Licensing Board Defense up to $35k.
For a side-by-side comparison of carriers, visit our carrier comparison hub.
Do I Need Both a Bond and E&O?
Yes, if you want full protection. The bond covers your legal obligation to the state and the public; E&O covers your personal liability. Without E&O, a simple error could wipe out your savings.
Many notary organizations, like the National Notary Association (NNA), recommend carrying at least $25,000 in E&O coverage. Some states require E&O for certain types of notarizations (e.g., remote online notarization). Check your state's rules.
Quick Caveat
Final pricing depends on your specific situation, state, and the carrier you choose. The ranges given here are estimates—always get a formal quote before buying. And remember, not all policies are equal: read the fine print on what's covered and excluded.