Notary Bulletin Hotline Tip: What Is A Surety Bond? By NNA Staff on February 02, 2011 in Hotline Tips Many states require Notaries to purchase a surety bond as protection for signers. A surety bond is a financial guarantee that a person who loses money because of a Notary’s misconduct will be reimbursed up to the bond’s limit. A surety bond is not an insurance policy and doesn’t protect you from liability. If damages are paid to a signer out of a surety bond, you are required to pay back the amount to the bonding company. For example, if you have a $10,000 bond, and are ordered to pay $1,000 in damages after a lawsuit, the bonding company would pay the damages. Then you would have to repay the bonding company. To protect yourself from liability, you should take out a separate type of insurance policy known as errors and omissions insurance. Email Share Leave a Comment Required * Name * Email *(for verfication purposes only) Comment * Enter the text shown in this image *(text is case sensitive)All comments are reviewed and if approved, will display.