They do that because that's how they make their money - by selling products. What you need is highly dependant on your state - so it's difficult to fully answer your question without knowing where you are.
As for the bond - you probably have to have the bond before you're commissioned - so you may want to go through an agency like Budget Notary, Troy Fain Insurance, or the like, who will process your application and provide the bond for you. If you've obtained the application for your state on your own, just google "notary public bond" - you'll find your answers. The amount of bond needed is regulated by your state. Also, journal requirements are also regulated by your state...whether needed or not. Do you need an education course first in order to be commissioned or do you just sign an app and submit it? Des your state require you use a rubber seal or not? Again, state-specific.
As for E&O - that protects you from claims made again you for errors you make in your notarizations. How much you carry is entirely up to you .depending on your personal circumstances. When I was doing loan signings and was a very active mobile notary I carried $100,000 - now that I'm not doing signings and am not all that active any more, I've carried $25,000, and just recently decided not to renew in June...so I'll carry none.
Hope this helps. And Good Luck