Michigan notary bond guide
Michigan Notary Bonds: What They Protect
A required bond protects the public; optional errors and omissions coverage addresses a different need.
$10,000 bond
Public protection
E&O is separate
Term matters
The short answer
Michigan generally requires a notary applicant to obtain a $10,000 surety bond and file it with the county clerk, with an exception for qualifying Michigan licensed attorneys. The bond is primarily for the public’s protection if the notary causes qualifying damage through misconduct. It is not the same as optional notary errors and omissions (E&O) insurance that may help protect the notary.
Why It Matters
Notaries verify identities, witness signatures, and perform other authorized acts that people rely on in important transactions. A mistake or misconduct can create a loss for someone relying on the notarization. The Michigan Secretary of State requires a $10,000 bond as part of the appointment process for most applicants and explains the filing steps.
Our original article correctly connected the bond to public protection and discussed optional E&O for inadvertent mistakes. It also called the bond insurance for the notary and implied it usually pays the notary’s own legal fees. That blurs two different products. The bond’s obligation is to eligible harmed parties; the surety may seek reimbursement from the notary. E&O terms, if purchased, determine what defense and damages are insured for the notary.
If you handle real estate or loan signings in Michigan, your potential exposure and contracting requirements may be larger than a basic bond. Ask about an E&O limit suited to the work, but do not assume a bond or E&O cures an invalid notarization.
How a Michigan notary bond works
A surety bond involves the notary, the surety issuing the bond, and the public or state protected by the bond. The $10,000 amount is the bond’s stated penal sum, not a personal insurance limit that the notary can spend on any claim. Michigan says the bond protects the public from damage caused by a notary’s misconduct and may require replacement bonding if claim payments deplete the bond. See the state’s notary FAQ.
Filing and duration
Obtain the bond from a surety licensed in Michigan, file it with the appropriate county clerk, and complete the application and oath process. State application instructions call for a bond written for a six- or seven-year term corresponding to the commission. Verify dates on the issued document rather than assuming every commission has exactly six years.
Why optional notary E&O matters
Notary errors and omissions insurance is a separate policy intended to address covered claims against the notary for negligent mistakes, subject to exclusions, limits, deductibles, and defense terms. Examples could involve a missed signature step or an identity-verification error, but coverage is never automatic.
The original post noted that the agency could arrange optional E&O with some bond placements and potentially higher limits for loan signing work. Product availability, limits, price, and carrier relationships can change, so request current terms rather than relying on a 2024 offer. Compare whether the E&O covers the services you actually provide, including any signing-agent work.
For an overview of other bonds, see our surety bond buying guide.
What to check before buying
- Confirm the official Michigan bond amount and county filing instructions.
- Match the bond term and applicant name to the commission application.
- Check that the surety is authorized in Michigan.
- Ask whether E&O is included, optional, or separately issued.
- Review E&O covered services, exclusions, defense costs, and the per-claim and aggregate limits.
- Keep the bond, commission, and insurance records together.
Frequently asked questions
Is a $10,000 bond required for Michigan notaries?
Generally yes. Michigan’s Secretary of State lists a $10,000 bond requirement for applicants, with an exception for qualifying licensed attorneys.
Does the bond protect the notary from paying a claim?
It protects eligible members of the public. The surety may seek reimbursement from the notary after paying a valid claim.
Is E&O insurance required?
The state bond requirement and optional E&O are different. A client or contracting company may impose separate insurance requirements.
Can one E&O policy cover loan signings?
Only if the policy includes that work. Review the covered professional services and requested limit with the insurer.
Get the right bond and review E&O
Customers First Insurance Group can help Michigan notaries compare available bond and E&O options. Contact our team to review your application and services.
General educational information, not legal advice. Michigan appointment requirements and coverage depend on current law, issued bond and insurance forms, and claim facts.