Notary Insurance, Bond in Colorado

Notary Insurance, Bond in Colorado

Under current Colorado law, a notary is not required to purchase a bond.  A bond was required by Colorado notary law for many years, but the law was repealed.

Notary Bond

Colorado Notary Law

A bond provides protection to the public.  If the notary makes an error or omission, the customer may make a claim to the bonding company for damages.  Upon confirmation of the claim, the bonding company will pay the customer for the damages, up to the maximum amount of the bond.  Then the notary must reimburse the bonding company.

Errors and Omissions (E&O) Insurance

A notary may choose to purchase a bond, but it is now optional.  Many notaries choose to purchase notary insurance, specifically, errors and omissions (E&O) insurance.  It is not required.  E&O notary insurance is inexpensive and is a deductible business expense.  Policies are available with face amounts from $10,000 and up.

E&O notary insurance protects the notary.  If the notary makes an error or omission, the customer makes a claim to the insurance company for damages.  The insurance company will pay the customer for the damages, up to the face amount of the policy.  The policy also provides the notary with legal defense in the claim or dispute.

While it is prudent for a notary to carry E&O notary insurance, it is best to keep the coverage amount confidential to avoid becoming a lawsuit target.  The notary should consult with a knowledgeable, licensed insurance agent to choose the proper coverage.

Although a notary bond is no longer required by Colorado law, notaries in many other states are required to purchase a notary bond.

The more knowledge, training and experience the notary has, the less likely that a notary error or omission will occur.  Notaries should use reasonable care and double check their work.

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