In order to work as an NSA, you must be Bonded and Insured. Working through NNA makes this process easy. When you first start, you can get set up with both through their providers / affiliates / friends / folks they work with – I am not sure of the actual relationship, I just know they make it easy.
In Texas, the required Surety / Notary Bond amount is $10,000 and the minimum Errors & Omissions (E&O) Insurance is $25,000. These might be Texas numbers, just be aware, your state might be different. And this is really just a great place to start.
First, let’s get a couple of definitions out of the way, so we all know what we’re talking about…
Bond / Notary Bond / Surety Bond
A Notary Bond is a type of Surety Bond that protects the public from financial harm caused by a Notary’s mistakes or misconduct. Required bond amounts range from $500 to $50,000 depending on the state, and the Notary typically pays a small annual premium to keep the bond active throughout their commission. The Bond gives anyone who suffers a loss from a faulty notarization a way to recover money, but it does not protect the Notary personally. That distinction catches many new Notaries off guard and has real financial consequences worth understanding before you get commissioned.
https://legalclarity.org/what-is-a-notary-bond-and-how-does-it-work
E&O Insurance
Notary Errors and Omissions (E&O) insurance pays to defend you when someone claims your Notarization mistake caused them financial harm. Unlike a Surety Bond, which reimburses the person you harmed, an E&O policy protects your own finances by covering legal defense costs and any settlement or judgment against you. Premiums for most Notaries run somewhere between $50 and $250 a year depending on coverage limits, making it one of the cheapest forms of professional liability protection available.
https://legalclarity.org/notary-eo-insurance-coverage-costs-and-when-you-need-it
Thank you to LegalClarity.org. I snagged these definitions from their website. We are not connected in any way.
Many Signing Agencies will gladly accept you with $25,000 E&O Insurance, others will require $100,000. Be prepared to make that happen – eventually. It’s not terribly expensive and will likely open a few extra opportunities for you. The E&O Insurance provider that NNA uses can help with that incease.
If you want to work with Title Companies directly – and you do – many require $1,000,000 E&O Insurance. Your Bond will stay the same.
Unfortunately, in order to get $1,000,000 E&O coverage, you will need to go outside of NNA’s provider to acquire it. I reached out and asked for a referral and they were more than happy to help me out. However, as I understand it, your options are limited. I ended up going with Biberk and they have been great. I pay just over $40 a month (a little less than LegalClarity.com talks about).
Also, because I own my own business and am driving my own car more than I used to and I am operating as a Sole Proprietorship, I recommend considering an Umbrella Policy. You don’t need to think about this on day one, but as your business grows, it is something to check into. It is not expensive and can bring real peace of mind.
Umbrela Insurance
Personal umbrella insurance adds a secondary layer of liability protection on top of your auto, homeowners, and watercraft policies. When a lawsuit or settlement exceeds those primary limits, the umbrella policy picks up the remaining balance, shielding your savings, investments, home equity, and future earnings from seizure. Most policies start at $1 million in coverage and are sold in $1 million increments, with maximums typically reaching $5 million to $10 million. The cost is surprisingly low relative to the protection, which is why financial planners routinely recommend it for anyone whose net worth exceeds their existing liability limits.
https://legalclarity.org/what-is-personal-umbrella-insurance-and-do-you-need-it
I got this one from LegalClarity.org too.
I reached out to my Insurance guy and he took care of me…as a good Insurance Agent should. When you get an Umbrella policy, you will need to raise the coverage on your auto and home policies. It turned out to be less expensive to have increased coverage and an Umbrella Policy than just my regular coverage without the Umbrella Policy. How cool is that?
You are going to be spending a lot of time, energy and money growing your business, don’t risk losing it all because you are unprotected or underprotected.
To me, insurance is one of those things that we don’t think about until suddenly we need it or wish we had it or curse ourselves for not having it. The Bond, The Notary E&O and the Umbrella Insurance are all worth it because, let’s face, chances are you are human. And as you are human, chances are you will eventually make a mistake. It may not rise to the level requiring you to involve your Insurance, but if ever it does, be happy you have it.
TX Notary Guy 
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