A notary is required to obtain a bond when he/she applies for his/her commission. A commissioned notary is a public official, and therefore, the public is entitled to protection against certain mistakes or wrongdoing by the notary.

The surety company may pay damages up to the amount of the bond for losses caused by the notary's actions. The surety company may, however, have grounds to pursue the notary for reimbursement.

A notary public might, but is not required to, purchase Errors and Omissions (E&O) Insurance from a state licensed insurance company. As a notary public, many sensitive and important documents pass by the notary. The notary has an obligation to ensure the documents are handled properly. Many notaries have made unintentional errors, resulting in financial liability or trouble.

Errors and Omissions Insurance protects the notary in case of unintentional errors, up to the policy limit, and is an insurance policy in place to protect the notary as described in the policy.

Depending on the facts of the matter, the policy may cover attorney fees, settlements and court fees up to the policy amount. A notary does not reimburse the insurance company for claims paid out on behalf of the insured, the notary.