This is the standard $15,000 notary bond required by the state of California. The $15,000 bond runs
concurrent with your notary commission. The bond is to protect the public.
How does the bond work? Let's use an example. First, you make a mistake as a notary. For this example,
we'll pretend that you notarized a grant deed for James Jones giving his property away to his nephew.
The nephew brought the grant deed to you claiming that he was his uncle. You forgot to ask for his
identification and didn't record the notarial act in your journal. The nephew takes possession of the
property and sells it. The uncle sues you for an improper notarial act. The court awards the uncle.
The good news is that the first $15,000 will be covered by the bond. If the amount is $15,000 or less,
the bonding company will pay the amount to the uncle. If the amount is more than $15,000, the bonding
company will pay the first $15,000. The bad news is that the bonding company will make you pay them back
the $15,000. The bond protects the public. Your mistake would be covered by E&O insurance.
Note: Notaries are not sued often. Following the state requirements will protect you in almost all cases.
See below for E&O insurance.