Colorado Notary Bond: Do You Need One?

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One question that comes up often for new Colorado notaries is whether they need a surety bond. The short answer: Colorado does not require one. Unlike states such as California, Pennsylvania, and Michigan, Colorado has no bonding requirement for notary commissions. But understanding what a bond does, and what alternatives exist, will help you decide whether to get one anyway.

What Is a Notary Bond?

A notary bond is a type of surety bond that protects the public, not the notary. If a notary makes a mistake that causes someone financial harm, the injured party can make a claim against the bond to recover damages. The bonding company pays the claim, and then the notary must reimburse the bonding company.

A bond works like a line of credit. If someone files a claim, the bonding company pays it — then collects from you. In states that require bonds, the typical amount is $5,000 to $25,000. The bond amount is the maximum the bonding company will pay on a claim, not the notary’s personal financial exposure.

Why Colorado Does Not Require a Bond

When Colorado adopted RULONA in 2018 through Senate Bill 18-132, the legislature chose not to include a surety bond requirement. The reasoning was that other provisions of the law (training requirements, the exam, journal requirements, and the fee structure) provided sufficient public protection without adding the cost of a bond.

This is a cost advantage for Colorado notaries. In California, for example, notaries must post a $15,000 bond, which costs $38-$120 depending on the provider. Colorado notaries skip that expense entirely.

Should You Get a Bond Anyway?

Even though Colorado does not require a bond, some notaries choose to purchase one voluntarily. Reasons include:

• Employer requirement: Some employers, especially banks and title companies, may require their notary employees to carry a bond as part of their internal risk management policies.
• Signing agent work: While not a universal requirement, some signing services and title companies prefer to work with bonded notaries.
• Professional credibility: Advertising yourself as bonded can signal to potential clients that you take your responsibilities seriously.

A voluntary notary bond typically costs $30-$80 for a four-year term (matching the commission period). It is a modest expense if it helps you get work.

Bond vs. E&O Insurance

A surety bond and errors and omissions insurance serve different purposes: A surety bond and errors and omissions insurance serve different purposes:

	Surety Bond	E&O Insurance
Who it protects	The public	The notary
Who gets paid	The person harmed by the notary’s error	The notary (covers legal defense and judgments)
Does the notary repay?	Yes. The bonding company pays the claim, then collects from the notary.	No. The insurance company absorbs the cost.
Required in Colorado?	No	No
Recommended?	Optional	Strongly recommended

A bond protects the public, and you have to pay the bonding company back. E&O insurance protects you, and the insurance company covers the cost of claims. For most Colorado notaries, E&O insurance provides more practical protection than a bond.

How Much E&O Insurance to Get

Common coverage levels are $10,000, $25,000, $50,000, and $100,000. For most general notaries, $25,000 is sufficient. For signing agents who handle high-value real estate transactions, $100,000 is the standard recommendation.

E&O insurance costs are reasonable. A $25,000 policy typically runs $20-$40 per year. A $100,000 policy might cost $50-$100 per year. Compared to the potential cost of a lawsuit, it is inexpensive protection.

What E&O Insurance Does Not Cover

E&O covers negligence. It does not cover:

• Intentional wrongdoing or fraud
• Criminal acts
• Notarizations performed with a lapsed commission
• Notarizations where the notary had a financial interest in the transaction

If you knowingly backdated a document or notarized without the signer present, your E&O policy will not cover the resulting claim.

Common Questions

Why do some states require bonds and Colorado does not?

Each state sets its own notary requirements. When Colorado adopted RULONA in 2018, the legislature determined that the training requirement, exam, and journal rules provided adequate public protection without the added cost of a bond. States with bonds tend to have higher notary startup costs as a result.

Can I get both a bond and E&O insurance?

Yes. Some notaries carry both. The bond satisfies employers or signing services that require one, and the E&O insurance provides personal financial protection.

Where do I buy a notary bond or E&O insurance?

The NNA (National Notary Association) sells both bonds and E&O insurance. Other providers include Notary Rotary, American Association of Notaries, and various insurance companies. Shop around for the best rates.

Does E&O insurance cover me if I make a mistake on a real estate closing?

Yes, as long as the mistake was negligent (unintentional) rather than willful. If you accidentally left your seal off a document or recorded the wrong date in your journal, E&O would cover the resulting claim. If you knowingly notarized a forged signature, it would not.

What happens if a claim is made against me and I have no bond or insurance?

You are personally responsible for paying any judgment or settlement. If someone sues you for a notarial error and wins, you pay out of pocket. For large claims tied to real estate transactions, this could be financially devastating. This is why E&O insurance is recommended even though neither it nor a bond is legally required in Colorado.