Texas Notary E&O Insurance vs Bond: What the Law Requires

Texas Notary E&O Insurance vs the Commission Bond

Texas notaries often hear “bond” and “E&O” used as if they were the same product. They are not. The state requires a surety bond for your commission. Errors & omissions (E&O) insurance is a separate, optional business product that private hiring parties sometimes ask for. This guide sticks to what Texas law and the Secretary of State actually say — and what they do not.

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What Texas requires: the $10,000 surety bond

Before you enter the duties of office, Texas law requires each person appointed as a notary public to execute a bond in the amount of $10,000 with a solvent surety company authorized to do business in this state. The bond must be approved by the secretary of state, payable to the governor, and conditioned on the faithful performance of the duties of office (Tex. Gov't Code §406.010(a)).

The Texas Secretary of State’s educational materials summarize the same requirement: each notary posts a $10,000 bond with the Secretary of State (Texas SOS Notary Public Educational Information).

Key points from those sources:

The bond amount in statute is $10,000 — not a price quote for what you pay a surety; premiums are set by providers and are outside this article.
The bond is deposited with the Secretary of State and may be sued on by an injured party (§406.010(b)).
Chapter 406 does not create a statutory requirement that you purchase a private E&O policy to hold a traditional Texas notary commission.

What the bond is — and is not

The SOS educational page is explicit about personal liability and the bond’s purpose:

A Notary Public is personally liable for negligence or fraud in the performance of the duties of the office. The bond is to insure that the person injured can recover at least $10,000.00, but this does not protect the Notary Public from personal liability for the full extent of damages caused by a breach of official duty.

(Texas SOS Notary Public Educational Information)

In plain terms:

Concept	Role under Texas law / SOS guidance
Surety bond (§406.010)	Required for commissioning; helps an injured member of the public recover up to the bond amount
Personal liability (SOS edinfo)	You can still be liable beyond the bond
E&O insurance	Not listed in Chapter 406 as a commission prerequisite

The bond protects the public’s ability to recover when you breach official duty. It is not described by the SOS as insurance that shields you from claims.

What E&O insurance is (business context, not a state mandate)

Errors & omissions insurance is a private insurance product that some notaries purchase to help manage risk from alleged mistakes in their professional work. Texas Government Code Chapter 406 (Notary Public) sets out bonding, seals, records, fees, and related duties — it does not impose a statewide E&O purchase requirement for a traditional commission (Chapter 406).

This article does not recommend insurers, quote premiums, or link to any insurance marketplace. If you evaluate E&O, compare policies yourself with a licensed advisor and read exclusions carefully.

When signing services and title companies ask for E&O

Many loan-signing platforms, title companies, and law firms set their own vendor requirements. Those contracts can ask for proof of E&O even though the state did not make E&O a condition of your SOS commission.

That is a hiring-party rule, not a substitute for §406.010. Always:

Confirm what the hiring party’s written requirements say.
Keep your commission, seal, and record book compliant with Chapter 406 and SOS rules.
Do not confuse “required by this company to get work” with “required by Texas to stay commissioned.”

For how commissioning itself works, see Become a Texas notary and our how to become a notary in Texas walkthrough.

Practical checklist (cited)

Bond before (or as part of) commissioning — $10,000 surety bond per §406.010 and SOS educational information.
Seal and record book — separate legal duties under §406.013 and §406.014; see our seal requirements and record book requirements guides.
E&O — optional under Chapter 406; may be required by private hiring parties. No prices or vendors in this guide.

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