Notary Insurance: Being a notary public is a position of trust. Whether you’re notarizing real estate documents, loan agreements, or affidavits, you play a crucial role in protecting the integrity of legal transactions. But with responsibility comes risk. That’s where notary insurance steps in to safeguard you from financial loss, lawsuits, and unexpected liabilities.
If you’ve ever wondered, “Do notaries need insurance?” or “What does notary insurance cover?”—you’re in the right place. In this comprehensive guide, we’ll break down everything you need to know about notary errors and omissions insurance (E&O insurance), notary bond insurance, coverage costs, and why it’s a must-have for every notary public.
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What is Notary Insurance?
Notary insurance is a specialized form of coverage designed to protect notaries from liability claims, financial damages, or mistakes made during the notarization process. It provides peace of mind, ensuring that you won’t face devastating out-of-pocket expenses if a client claims you made an error.
There are two primary types of notary insurance:
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Notary Bond Insurance – Required by many states. A surety bond that protects the public, not the notary. If a notary makes an error or acts dishonestly, the bond compensates the victim, but the notary must repay the bond company.
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Notary Errors and Omissions (E&O) Insurance – Optional but highly recommended. This protects the notary directly, covering legal fees, settlements, and defense costs if they’re accused of negligence or mistakes.
Notary insurance is a protective policy for notaries public, covering mistakes, negligence, or claims that arise from notarizing documents. It typically includes notary bond insurance (public protection) and errors & omissions insurance (personal protection).
Why Do Notaries Need Insurance?
Being a notary may seem like a low-risk job, but the truth is even a small mistake can lead to lawsuits or financial losses. Imagine missing a signature on a loan document or notarizing the wrong identification—these errors could cost clients thousands of dollars and drag you into a legal battle.
Here’s why insurance for notaries is essential:
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Protection from Lawsuits: Legal battles are expensive. Even if you’re innocent, attorney fees can pile up.
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Financial Security: Mistakes happen. Insurance ensures you don’t pay out of pocket.
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Credibility & Trust: Clients prefer working with insured notaries because it shows professionalism.
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State Requirements: Some states require notaries to carry a surety bond or E&O insurance.
Example Scenario: You notarize a deed transfer, but the signer later claims their signature was forged. Without insurance, you could face thousands in legal costs. With notary E&O insurance, your defense is covered.
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Types of Notary Insurance
Not all notary insurance policies are the same. Understanding the difference helps you choose the right coverage for your needs.
1. Notary Bond Insurance
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Required by many states (e.g., California, Texas, Florida).
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Protects the public from fraud or misconduct.
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Coverage typically ranges from $5,000 to $15,000 depending on state law.
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Notary must reimburse the bond company if a payout occurs.
2 Notary Errors and Omissions (E&O) Insurance
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Protects the notary directly.
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Covers negligence, human errors, or unintentional mistakes.
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Policy limits range from $25,000 to $100,000+ depending on the plan.
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Recommended for notary signing agents handling mortgage and loan documents.
3.3 Professional Liability Insurance for Notaries
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Broader coverage that may include general liability.
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Useful for notaries running a business or offering mobile services.
Key Difference : The main difference between notary bond insurance and E&O insurance is that bonds protect the public while E&O insurance protects the notary.
What Does Notary Insurance Cover?
Coverage varies by policy type, but in general, notary insurance covers:
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Errors and Mistakes – Wrong dates, missing stamps, incorrect names.
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Negligence Claims – Failing to verify identification properly.
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Forgery Claims – If someone alleges you notarized fraudulent documents.
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Legal Defense Costs – Attorney fees, court expenses, settlements.
Notary Insurance Typically Does NOT Cover:
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Intentional misconduct or fraud.
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Criminal activity.
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Acts outside your duties as a notary.
Example Coverage in Action:
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You notarize a loan agreement but forget a signature → Client sues for financial damages → E&O insurance covers defense and settlement costs.
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You notarize a will and a family member challenges it in court → Insurance covers your legal expenses.
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How Much Does Notary Insurance Cost?
The cost of notary insurance depends on several factors, including your state, coverage limits, and whether you’re a general notary public or a notary signing agent.
Average Notary Bond Insurance Cost
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Ranges from $30 to $120 per year (depending on state requirements).
Average Notary E&O Insurance Cost
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$25,000 coverage → $40–$60 per year
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$50,000 coverage → $80–$120 per year
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$100,000 coverage → $150–$250 per year
Factors Affecting Cost:
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State laws and bond requirements
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Type of documents notarized (loans, real estate, etc.)
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Amount of coverage you select
Notary insurance costs between $30 and $250 per year depending on state laws, coverage amount, and whether you choose bond insurance or E&O insurance.
Notary Bond vs. E&O Insurance: What’s the Difference?
Many new notaries get confused between a notary bond and errors and omissions (E&O) insurance. While they may sound similar, they serve very different purposes. Understanding the difference ensures you stay fully protected.
1 Notary Bond Insurance
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Who it protects: The public, not the notary.
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Purpose: Acts as a guarantee that the notary will perform their duties ethically and according to the law.
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How it works: If a notary commits fraud or makes an error, the injured party can file a claim against the bond. The surety company pays the claimant, but the notary is responsible for repaying the bond company.
2 Notary Errors & Omissions (E&O) Insurance
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Who it protects: The notary themselves.
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Purpose: Provides financial protection for notaries accused of errors, omissions, or negligence.
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How it works: If a claim is filed, the E&O insurance pays for the notary’s legal defense, settlements, or judgments, up to the policy limit.
Example:
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If you notarize a real estate document incorrectly and the buyer loses money, a bond pays them back, but you must repay the bond company.
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With E&O insurance, your policy covers those costs, so you don’t pay out of pocket.
A bond protects the public, while E&O insurance protects YOU as the notary.
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Who Needs Notary Insurance?
Notary insurance isn’t just for high-volume professionals. Whether you notarize once a week or hundreds of times a month, anyone carrying out notarial acts can benefit from coverage.
1 General Notaries Public
Even if you notarize simple affidavits or ID verifications, mistakes can happen. A small clerical error could still lead to legal action.
2 Notary Signing Agents (NSAs)
Loan signing agents handle mortgage, title, and real estate transactions. These documents involve high financial stakes, so E&O insurance is almost a necessity. In fact, many lenders and title companies require notaries to carry at least $25,000 to $100,000 in E&O coverage.
3 Mobile Notaries
If you travel to client homes or businesses, you face added exposure. Mobile notaries often opt for professional liability insurance in addition to E&O insurance.
4 State Requirements
Some states require notaries to carry a surety bond before they are commissioned. States like California, Texas, and Florida have minimum bond amounts that must be maintained.
Every notary, regardless of experience level, benefits from at least a basic bond and E&O insurance policy.
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How to Choose the Right Notary Insurance Policy
Selecting the best notary insurance depends on your work volume, risk level, and budget. Here’s how to make the right choice:
1 Evaluate Coverage Limits
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Occasional notary work → $25,000 E&O coverage may be enough.
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Loan signing agent → At least $100,000 E&O coverage recommended.
2 Compare Notary Bond Requirements by State
Each state has different laws. For example:
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California requires a $15,000 bond.
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Texas requires a $10,000 bond.
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Florida requires a $7,500 bond.
3 Bundle Insurance for Better Value
Some companies offer packages that include notary bonds, E&O insurance, and supplies at a discounted price.
4 Look for Reputable Providers
Popular providers include:
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National Notary Association (NNA)
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RLI Insurance Company
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State Farm Notary Insurance
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BiBerk Notary Insurance
Always read the policy exclusions carefully to make sure you’re covered for your specific notarial services.
Best Notary Insurance Companies
Not all insurers are equal when it comes to protecting notaries. Here are some of the best notary insurance companies based on coverage options, affordability, and reliability:
1 National Notary Association (NNA)
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Specializes in notary insurance.
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Offers bonds, E&O coverage, and notary supplies.
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Policies can be bundled for convenience.
2 RLI Insurance Company
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Known for competitive pricing.
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Provides surety bonds and E&O coverage for notaries across multiple states.
3 State Farm Notary Bond & Insurance
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Offers notary bond insurance through local agents.
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Ideal for notaries who already use State Farm for personal or business insurance.
4 BiBerk Notary Insurance
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A Berkshire Hathaway company.
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Provides affordable E&O insurance for notaries and signing agents.
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Online application makes it fast and easy.
5 Travelers Insurance
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Offers notary bonds and E&O coverage.
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Popular with notary signing agents handling high-value real estate documents.
Best Choice for Beginners: NNA (for bundled packages).
Best Choice for Signing Agents: Travelers or BiBerk (for high E&O coverage).
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Frequently Asked Questions About Notary Insurance
Q. Do I really need notary E&O insurance?
Yes, even though it’s not legally required in most states, E&O insurance protects you from lawsuits and costly mistakes.
Q. How much notary insurance should I carry?
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Casual notaries: $25,000–$50,000 coverage.
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Loan signing agents: $100,000+ coverage is recommended.
Q. Can I buy notary insurance online?
Yes, providers like NNA, BiBerk, and RLI allow you to apply and purchase coverage online.
Q. How much is notary insurance per year?
Most notaries pay between $40 and $250 per year depending on coverage limits.
Q. Is notary bond insurance the same as notary E&O insurance?
No. Bond insurance protects the public, while E&O insurance protects you.
Common Claims Against Notaries
Even the most careful notaries can face claims. Understanding common mistakes helps you avoid them and underscores why insurance for notaries is so important.
1 Improper Identification Verification : One of the most frequent claims arises from notaries failing to properly check a signer’s ID. If a fraudulent party slips through, the notary could be held liable for enabling fraud.
Example: A notary notarizes a property deed for someone impersonating the true owner. Later, the rightful owner sues, alleging negligence in verifying identity.
2 Missing Signatures or Stamps : A missing notary stamp or signature can invalidate an entire document. When that document involves real estate, loans, or wills, the consequences can be severe.
3 Incorrect Dates or Information : Filling out the wrong date or spelling a name incorrectly may seem minor, but it can result in rejected legal filings, financial losses, and claims against the notary.
4 Unauthorized Notarial Acts : Sometimes, a notary may unknowingly perform acts outside their authority. For instance, notarizing a document for a family member, or notarizing without the signer present, can lead to disciplinary action and claims.
The most common notary claims involve ID errors, missing information, or unauthorized acts—all of which are covered under a strong E&O insurance policy.
How to File a Notary Insurance Claim
If you’re ever faced with a lawsuit or allegation, knowing how to file a claim quickly can make the process less stressful.
1 Steps to File a Claim
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Notify Your Insurance Company Immediately – Report the claim as soon as you’re aware of it.
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Provide Documentation – Submit the notarized document in question, your journal entry, and any communication related to the incident.
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Cooperate with the Investigation – Your insurer may request additional details or interviews.
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Allow the Insurer to Handle Legal Defense – Do not admit liability or negotiate directly with the claimant.
2 What Happens Next?
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The insurance provider will review your case.
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If valid, they’ll assign a legal team to defend you.
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If damages are awarded, your policy covers them up to your limit.
Keep detailed, accurate records of every notarization in your journal. Good recordkeeping can make or break your defense in a claim.
Tips to Reduce Risk as a Notary Public
Insurance is essential, but prevention is equally important. Following best practices reduces the chance of ever needing to file a claim.
1 Always Verify ID Thoroughly : Check government-issued photo IDs and compare signatures carefully. If in doubt, refuse to notarize.
2 Never Skip the Journal Entry : Even if your state doesn’t require it, maintaining a journal protects you. Note the type of document, names, ID used, and date/time.
3 Avoid Conflicts of Interest : Never notarize documents for close family members or situations where you could benefit financially.
4 Use Proper Notary Certificates : Ensure your acknowledgment or jurat wording matches state requirements. Outdated or incorrect certificates can invalidate documents.
5 Stay Updated with Training : Laws and notary procedures change. Consider joining organizations like the National Notary Association (NNA) for training and updates.
Good practices + insurance = complete protection.
Notary Insurance by State
Notary insurance requirements vary significantly depending on where you live. Some states only require a bond, while others strongly encourage or mandate additional coverage.
1 California Notary Insurance
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Requires a $15,000 notary bond.
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E&O insurance optional but highly recommended (especially for loan signing agents).
2 Texas Notary Insurance
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Requires a $10,000 bond.
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Many notaries purchase $25,000–$100,000 E&O insurance for added protection.
3 Florida Notary Insurance
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Requires a $7,500 bond.
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Mobile and signing agents typically carry E&O coverage for high-value transactions.
4 New York Notary Insurance
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No bond requirement.
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Many notaries opt for E&O insurance voluntarily for protection.
Always check your Secretary of State’s office for the latest notary insurance and bond requirements in your state.
Future of Notary Insurance
As digital notarization and remote online notarization (RON) become more popular, insurance for notaries will continue to evolve. With more transactions moving online, new risks are emerging.
1 Digital Fraud Risks : Online notarizations introduce cybersecurity threats. Fraudulent identities and digital tampering increase the potential for claims.
2 New Policy Options : Some insurers are beginning to offer cyber liability coverage for notaries handling electronic notarizations.
3 Higher Coverage Demands : As real estate and loan transactions continue to rise in value, lenders are requiring larger E&O policies from signing agents.
Notary insurance will likely expand to cover cyber risks, remote notarizations, and higher financial limits. Notaries who adapt early will have a competitive advantage.
Why Every Notary Needs Insurance to Protect Career and Clients
Notary insurance is more than just a safety net—it’s an essential tool for protecting your career, finances, and reputation. Whether you’re a general notary public handling basic documents or a loan signing agent managing high-value real estate deals, the right mix of bond insurance and E&O coverage ensures you’re protected from costly mistakes and lawsuits.
At the end of the day, being a notary is about trust. Having proper insurance not only safeguards you but also reassures your clients that you take your responsibilities seriously.
”FAQs”
1. Is notary insurance mandatory in every state?
No, not all states require insurance. Most states require a bond, but E&O insurance is typically optional.
2. Can a notary be personally sued even if they have a bond?
Yes. A bond protects the public, not the notary. Without E&O insurance, you may still pay out of pocket.
3. Do mobile notaries need extra insurance?
Yes. Mobile notaries often face higher risks and should consider professional liability insurance in addition to E&O.
4. Does notary insurance cover fraud?
No. Intentional misconduct or fraud is not covered. Only errors, omissions, or negligence are included.
5. How quickly can I get notary insurance?
Most providers (like NNA or BiBerk) allow you to apply and get coverage the same day online.
