What the Texas Notary Bond without E&O coverage ($10,000) is for
The state usually requires this bond before it commissions a notary. It protects the public if the notary makes a mistake or commits misconduct.
The bond amount is set by the agency, utility or fund that asks for it. If the bond holder doesn't meet their obligations, a valid claim is paid up to that amount, and the bond holder repays the surety.
What the price depends on
A fixed price set by the surety. No surprises at checkout.