A notary bond is a contract that is legally binding which guarantees that the notary will fulfill its tasks in a manner that is ethical and law abiding. When a notary fails to affect their duties the next step is to file a claim against the bond. The claim against the bond is usually filed by the state or individuals who have been affected by the actions of the notary. If a claim that has been filed is valid the bond amount is supposed to be used in reimbursing the affected parties which is a good strategy in protecting consumers and the state from any financial loss.
Notary Surety Bonds
How much do notary surety bonds cost?
The cost of a notary bond is varied from one state to another. The reason for this variety is because each state has specific bonding requirements that apply for notaries in their state. Notary bonds are preferred because they are one of the easiest and quickest bonds which can be issued. They are issued on the spot without the need for underwriting.
[if you need a surety bond for notary public, feel free to contact our office. We’d appreciate the opportunity to educate you on notary bonds, or any other type of bond. We can bond in all states! Notary bond leaders]
What is a notary surety bond?
A notary surety bond is an agreement that involves three parties and is legally binding between an obligee, principal and a surety company. The obligee is the individual who requires the bond. The surety company is the company that is selling the bond and the principal is the individual or entity who requires the bond. The bond acts as a guarantee that the principal will adhere to specific laws. The bond will reimburse the individual who has faced losses or damages that the principal has caused.
Why do I need a notary public bond?
Individuals need notary public bonds because public notaries and notaries are held in high legal regard and act as witnesses to ensure that signatures are valid on legal documents which are important. There are states which require individuals to source for public bonds before they engage in some form of business. It is therefore important to check with your state whether you are required to have a notary public bond while engaging in various activities.
How do I get a notary bond?
Notary bonds have the benefit of being instantly approved. They require a minimal amount of information to be obtained. The information required to obtain notary bonds is usually the notary’s address and name. There are states which require a notary to provide additional information apart from their address and name. This information usually includes a valid phone number so that they may be able to easily reach you.
Differences between state requirements
The laws which govern the notary bond business vary from one state to another. In most states when a notary does not perform their duties, they are required by law to pay for the losses. In Pennsylvania the amount to be paid out can be up to $10,000 which is sourced from the notary bond. The notary public performs acts pertaining to notarization only during the time when the bond is valid. A notary public bond should be effected by an authorized insurance company. The notary bond in some states increases in value. The bond is a requirement for a notary bond business to be granted a license to operate in a specific state. A majority of the states do not require a notary business to have errors and omission insurance for them to operate legally. It is an option but the notary bond is a mandatory requirement in most states.
What could happen if I’m not bonded as a notary?
If you are not bonded as a notary some states will consider you to be operating illegally. The notary bond is supposed to cover individuals and the state against claims which may be filed on them. If there is no notary bond available when a claim is filled the individuals or state in which the notary business operates will not be protected. They will have to settle the claim from their own pocket meaning that they will be directly liable for the outcome of the claim.
Errors & Omission Insurance
Discussion on Errors and Omissions Insurance
In the process of purchasing a notary bond, there are notary public errors and omissions insurance that are optionally applicable. Notary public errors & omissions insurance protect the notaries when a client wants compensation that is financial because the notary made a mistake. The notary errors and omissions insurance are structured in a way that protects professional and personal assets in case a mistake occurs during the notary process. It is important to consider notary public errors & omissions insurance even though it may be costlier than not having it.
Notary Public Errors and Omissions Insurance
Why E&O insurance is important
Mistakes that may occur during the notarization process are covered by the errors & omissions insurance. A mistake made during notarization can potentially cause an individual to lose their home. Savings account or even their business. When you experience such a big loss due to a mistake that is very minor is something most of us deem very unfair. It is true that many people are bound to make mistakes every day but the mistake should not cause a huge negative impact in your life. The notary errors and omissions insurance help protect an individual from mistakes that may occur during the notarization process.
It is important to have the E&O insurance to safeguard all your assets from being taken away from you. It is essential to have peace of mind while working, therefore, acquire errors and emission insurance today so that you may guarantee yourself for paying any liabilities. The insurance is very affordable and will cost you pennies each day. The notary bond does not protect a state or an individual in case errors or omissions occur during the notarization process.
The notary bond covers the public only if the surety company settles the claim however you are required to reimburse the surety company. The notary errors and omissions insurance are very affordable. It is determined based on the income levels of the notaries. It is very important because whatever the cost if you do not have notary public errors & omissions insurance when a lawsuit is filed against you the amount of money you will have to pay in terms of legal fees and other costs, will come from your own income.
Surety Bond for Notary Publics
A Notary Public Bond is required in most states. Check with the governmental agency within your State to find out how to become a notary public. We also offer notary public errors & omissions insurance, as well as error & omissions insurance for Notary Signing Agents.
NFP Surety can assist you with a wide variety of notary surety bonding requirements. Our staff is familiar with the notary bond you need and will provide it affordably and on the bond form that is required. If you need a surety bond for notary publics, please call our office.
Please let us know if you have any questions or call us at (800) 863-3210 for a free quote.