Notary bonds are meant to protect the public, whereas E&O insurance is designed to protect the notary. A notary bond is a way to help guarantee that a notary public will perform their duties lawfully and ethically. In some states, notary publics must purchase a bond in order to work as a notary. An E&O insurance policy provides notary publics with important protection. It will cover the costs associated with lawsuits and other legal action, which a notary bond does not.