Surety Bonds vs. E&O Insurance
When preparing to become a notary public, navigating the legal jargon and state paperwork can feel overwhelming. One of the most common stumbling blocks for new applicants is understanding the difference between a Surety Bond and Errors & Omissions (E&O) Insurance.
Because every U.S. state sets its own notary laws, requirements vary widely across the country. Here is what prospective and new notaries in Washington State need to know about setting up their credentials correctly.
🏛️ A Common Myth: Secretary of State vs. WA Department of Licensing
In the vast majority of U.S. states, notary public commissions are handled by the Secretary of State. However, Washington is unique!
In Washington State, the regulating body that oversees, approves, and issues notary public commissions is the Washington State Department of Licensing (DOL).
If you send your application to the WA Secretary of State, it will be delayed or returned. When you apply or submit state paperwork, you will deal directly with the WA DOL Notary Public Program.
🛡️ 1. The $10,000 Surety Bond (Mandatory)
To receive your notary commission from the WA Department of Licensing, you must purchase and file a $10,000 surety bond that lasts for your 4-year commission term.
Key Facts About the Surety Bond:
- Who it protects: The public—not you.
- What it does: It guarantees that if you commit a mistake, omission, or fraudulent act that causes financial harm to a member of the public, the bonding company will compensate the victim up to $10,000.
- The fine print: A surety bond is not insurance. If the bonding company pays out a claim due to your error, you are legally required to pay back every penny to the bonding company.
- State requirement: Proof of this signed bond must be submitted to the WA DOL alongside your initial $40 state fee.
💼 2. Errors & Omissions (E&O) Insurance (Optional, but Essential)
Unlike the mandatory bond, E&O Insurance is optional in Washington State. The Department of Licensing does not mandate it, nor do they ask for proof of coverage.
Key Facts About E&O Insurance:
- Who it protects: You (the notary).
- What it does: If a signer or client sues you over an alleged error, omission, or honest oversight, an E&O policy covers your legal defense fees, court costs, and potential financial settlements.
- The fine print: Unlike the bond, you do not have to pay back the insurance company for covered claims. It functions like typical liability insurance.
- Coverage options: Policies are typically very affordable (often ranging from $5,000 to $100,000+ in total 4-year coverage).
📊 Quick Comparison: Bond vs. E&O in Washington
| Feature | $10,000 Surety Bond | Errors & Omissions (E&O) |
| Required by WA DOL? | Yes (Mandatory) | No (Optional) |
| Who is protected? | The public/clients | You (the notary) |
| Who pays if a claim is made? | You must reimburse the bond company | The insurance company covers it |
| Covers legal defense? | No | Yes |
| Primary purpose | Financial protection for the state’s citizens | Liability protection for your personal assets |
The Bottom Line for WA Notaries
While Washington law only mandates the $10,000 bond to obtain your license, operating without E&O insurance leaves your personal bank accounts and assets exposed to lawsuits.
Purchasing a modest E&O policy alongside your bond is one of the smartest investments a new notary can make for peace of mind.
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