Understanding Notary Insurance: A Essential Guide

Q: Do I need E&O insurance if my state does not require it?

Yes. A notarization error can result in a lawsuit regardless of state requirements. E&O protects your personal finances.

Published September 27, 2024 · Updated May 21, 2026

Notary insurance is not one thing. There are three types of coverage that protect different people from different risks. Here is what each one does, what it costs, and which ones you actually need.

Errors and Omissions (E&O) Insurance

E&O insurance protects you. If you make a mistake during a notarization (wrong date, missing signature, incorrect venue) and someone sues you, E&O covers your legal defense and any settlement up to your policy limit.

Without E&O insurance, you pay out of pocket for attorneys, court costs, and damages. A single lawsuit could cost tens of thousands of dollars. The insurance costs $30 to $100 per year for $25,000 to $100,000 in coverage. For signing agents who do high-volume loan work, $100,000 in coverage is standard.

What E&O typically covers:

Errors in notarial certificates (wrong date, missing venue, incorrect signer name)
Failure to properly verify a signer’s identity
Notarizing for someone who appeared competent but was later found to lack capacity
Mistakes in loan document signings that cause financial harm to the borrower or lender

What E&O does not cover:

Intentional fraud or criminal acts
Claims arising from work outside your notarial duties (like giving legal advice)
Property damage or bodily injury (that is general liability)

Notary Bond

A notary bond protects the public, not you. If your notarial error or misconduct causes someone a financial loss, they can file a claim against your bond. The surety company pays them, and then you must reimburse the surety.

About 30 states require a notary bond before you can be commissioned. Bond amounts range from $500 to $50,000. The cost is typically $50 to $100 for a 4-year term.

A bond is not insurance for you. It is insurance against you. If you want to protect yourself financially, you need E&O insurance in addition to the bond.

General Liability Insurance

General liability covers bodily injury and property damage that happens during your business operations. If you spill coffee on a borrower’s laptop during a signing, or someone trips over your bag in their driveway, general liability covers it.

Most general notaries do not need this. Signing agents who operate as a formal business (LLC, corporation) may want it for the extra protection. Cost is typically $200 to $500 per year.

Quick Comparison

	E&O Insurance	Notary Bond	General Liability
Who it protects	You	The public	You and third parties
What it covers	Notarial errors and negligence	Your misconduct or fraud	Bodily injury, property damage
Required?	No (but recommended)	Yes, in about 30 states	No
Cost per year	$30–$100	$12–$25 (per year of a 4-year term)	$200–$500

Choosing E&O Coverage Amounts

$25,000: Minimum for general notaries who handle occasional documents.
$50,000: Good coverage for mobile notaries who see a moderate volume of clients.
$100,000: Standard for signing agents. Most title companies and signing services expect this level.
$250,000+: For agents who handle high-value transactions or work in litigation-prone areas.

Where to Buy Notary Insurance

NNA (National Notary Association): Packages E&O with notary supplies and bond. Widely used.
Notary Rotary / 123Notary: Offer standalone E&O policies.
Your existing insurance agent: Some business insurance providers add notary E&O as a rider on a business owner’s policy.
Online comparison sites: Get quotes from multiple providers.

Frequently Asked Questions

Do I need E&O insurance if my state does not require it?

Yes, you should still carry it. A notarization error can result in a lawsuit regardless of whether your state requires insurance. E&O protects your personal finances from claims that could cost thousands of dollars to defend.