What is a notary bond?


When dealing with finances, governments aim to protect customers from fraud. Therefore, many people take the services of a notary so that they do their job neutrally and ensure that they fulfill their duties.

Most real estate transactions require you to notarize a document to check its authentic of a document. And a notary plays a vital role in the whole process. But how do you ensure that the notary’s actions are unbiased in a business deal?

That is where a notary bond comes into play. It is a particular kind of surety bond that will ensure that the notary’s professional will fulfill their roles and responsibilities with adherence to the law. So, what is a notary bond? We will give you an idea of why it is one of the most important legal documents.

What is a notary bond?

Simply put, the notary bond is a type of surety bond necessary for many states. The notary surety bonds guarantee that the notary will perform their duties as per the legislation.

If the notary didn’t perform their duties properly, those affected by the notary’s action or even the start could file a surety bond claim against them. A valid claim will mean that the harmed parties will receive financial compensation for the notaries’ acts.

The bond amount will be reimbursed to the harmed parties. Therefore, the notary bond can help protect the state and the general public from financial loss.

Notaries deal with various legal documents and sensitive information. Therefore, notary bonds can offer extra protection if the notary fails to perform their responsibilities wisely.

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How much does a notary bond cost?

Notary surety bond would have different cost that varies from state to state since each has its requirements criteria. Nevertheless, the one thing that you can be sure about is that the notary bonds are the easiest and quickest bonds that you can get.

Since there isn’t any underwriting necessary for the issuance of the notary bonds, you can quickly get them in no time without going through a lot of hassle.

Plus, the notary bonds are not too expensive to purchase. The notary will only have to pay anywhere between $50 to $100 to secure the bonds.

Additionally, the usual amount for a notary bond can be from $5,000 to $15,000. However, you can get a notary bond for as high as $25,000 and as low as $500, which will be approved instantly.

Notary bond state requirements

To get a notary bond, you need to know the rules and requirements set by your state. Of the 50 states, 30 make it necessary for you to get a notary bond.

You can go through the Nation Notary Association’s website to understand your state’s notary requirements and specifications. You can also learn whether or not your state requires you to have a notary bond.

An important thing to note is that the notary bond is considered a form of insurance to protect all parties. It will secure the rights for the parties to get compensation if the notary fails to perform their responsibilities according to the legislation.

Notary bond vs. insurance

Most people might consider a surety bond the same as an insurance policy. That is not the case since they both have some significant differences. Let’s explore them in more detail.

Parties Involved

One of the critical differences between surety bonds and the insurance policy is the number of parties involved. There are three primary parties involved in the surety bond:

  • Obligee – the individual who gets protection through the bond
  • Principal – the individual who receives the bond
  • Surety – the individual who issues the bond

On the contrary, the insurance policies only involve two parties:

  • Insured – The individual who receives protection through the insurance policy
  • Insurer – The entity that provides the insurance policy (usually an insurance agency)


When it comes to losses, there is no way that the parties can incur a loss in a surety bond since the principal would have to pay back the amount in full. However, the insurance comes with some risk since the company has pooled it into the large numbers

Errors and omissions insurance

Another important thing to note is that the errors and omissions insurance is an add-on to the notary surety bond and is entirely different from the surety bond. The errors and commission bond protects the notary, whereas the notary public bond protects the general public.

Get documents notarized online with PandaDoc Notary

The notary seals and stamps ensure that the documents are authentic and accurate. Nevertheless, having the right notary services can help you with the entire process. And that is where PandaDoc Notary can assist you.

We can notarize any of your documents quickly, so you don’t have to go through any hassle. Contact us today, and we will be more than happy to assist you.