What Is a Notary Bond?

A notary bond (also called a notarial surety bond) is a type of surety bond that acts as a financial safeguard for the public. The bond ensures that if the notary (the “principal”) misbehaves, commits fraud, negligence, forgery, or fails to properly execute notarial acts, an injured party can file a claim. The bond provides financial recourse.

In this arrangement:

• The obligee is typically the state or commissioning authority (the office that requires the bond).
• The surety is the bond company that issues the bond, promising to pay valid claims up to the bond amount (though the principal must reimburse the surety).
• The principal is the notary who purchases the bond and is bound by its terms.</li

A notary bond does not insure you against claims (it doesn’t pay you); it protects third parties who suffer harm from your misconduct.

Why Do You Need a Notary Bond?

You may need a notary bond for the following reasons:

• It’s legally required in many states for obtaining or renewing your commission.
• It builds trust — clients (individuals, businesses, banks) see that you have financial backing.
• It provides a structured mechanism for recourse if errors or wrongdoing occur.
• It can be a condition for certain notarial tasks (e.g. handling large transactions).

If you skip it (when required), you may lose your commission, face civil liability, or be disqualified from performing notarial acts.

How a Notary Bond Works

1. Application / Underwriting
2. You apply with the bond company. They may check your background or credit.
3. Premium Payment
4. You pay a nonrefundable premium (a fraction of the full bond amount).
5. Bond Issuance
6. The surety issues the bond, you sign it, and file or register as required by state law.
7. If a Claim Arises
8. A third party making a valid claim demonstrates loss from your improper act (within bond’s terms). The surety may pay up to the bond limit, then require you (the notary) to reimburse them.
9. Expiration / Renewal
10. The bond runs concurrently with your commission period; to renew your commission, you’ll generally need a new bond or renew the existing one.

Frequently Asked Questions (FAQ)