4.4 Bonding and Insurance
Key Takeaways
- Colorado does NOT require a surety bond for notary commissions
- Employers may independently require bonding
- Errors and Omissions (E&O) insurance is optional but recommended
- E&O insurance protects notaries from personal liability
- Notaries can be personally liable for damages caused by misconduct
Last updated: January 2026
Colorado is among the minority of states that does NOT require notary public bonds. However, understanding insurance options is important for protecting yourself.
Colorado Bond Requirements
| Requirement | Status |
|---|---|
| State-Required Bond | NOT required |
| Employer-Required Bond | May be required by employer |
| Filing with State | Not applicable |
Comparison: Colorado vs. Other States
| State Type | Bond Requirement |
|---|---|
| Colorado | No bond required |
| Many other states | $5,000 - $25,000 bond required |
| Some states | Bond + additional requirements |
Errors and Omissions (E&O) Insurance
E&O insurance is optional but highly recommended:
| Feature | Description |
|---|---|
| What It Covers | Mistakes made during notarization |
| Who It Protects | The notary from personal liability |
| Typical Coverage | $25,000 - $100,000 |
| Annual Cost | Approximately $25-$50/year |
Why Consider E&O Insurance?
| Risk | Without Insurance | With Insurance |
|---|---|---|
| Honest mistake | Personal liability | Coverage provided |
| Legal fees | Out-of-pocket | Often covered |
| Settlement costs | Personal assets at risk | Policy pays |
Personal Liability
Even without required bonding, Colorado notaries can be held personally liable:
| Violation | Potential Consequence |
|---|---|
| Negligent notarization | Civil lawsuit |
| Failure to identify signer | Damages to injured party |
| Improper procedures | Financial liability |
| Official misconduct | Personal and legal consequences |
Employer Bonding Requirements
Some employers require notary employees to be bonded:
| Employer Type | Common Requirement |
|---|---|
| Banks/Financial institutions | Often required |
| Title companies | Often required |
| Law firms | Sometimes required |
| General employers | Varies |
On the Exam
Key points for the exam:
- State bond: NOT required in Colorado
- E&O insurance: Optional but recommended
- Employer bond: May be required independently
- Personal liability: Notaries are liable for misconduct
Test Your Knowledge
Does Colorado require notaries to obtain a surety bond?
A
B
C
D