A Notary bond is a financial guarantee Notaries purchase from a surety company. The bond ensure that, as a notary, you will fulfill all obligations to protect the public from financial harm resulting from any wrongdoing on your part when performing notarial duties. Many states require Notaries to obtain a bond before they perform notarial acts.
Bid bonds and License/Permit bonds serve as a guarantee that all terms and provisions found in a contractual agreement will be fulfilled. If the contracted party fails to fulfill the duties according to the agreed-upon terms in the written contract, the owner of the bond can claim against the bond to recover losses due to that failure. Contractors, subcontractors, and suppliers all need bonds.