How to Choose the Right Notary Bond for Your Specific Needs
Should you, as a notary, make an error or omission when notarizing a document, a notary bond shields the public from financial loss. It also protects you against false allegations of wrongdoing. It’s important to note that this bond differs from an errors and omissions insurance policy. Learn more about the differences here.
Reputable Surety Companies
If you are required to purchase a notary bond, look for a provider with a solid reputation. They should have extensive experience working with notaries in your state and a team of industry specialists who can handle all your needs. Public financial loss resulting from a notary’s unethical or illegal actions can be shielded from the public by a Texas notary bond. It can also cover damages incurred by a client who was harmed due to the notary’s negligence or misconduct.
Before applying to become a notary public in your state or county, a notary bond must be obtained. In addition to providing the bond, a notary should consider purchasing errors and omissions (E&O) coverage. This policy will not only help the notary in the event of a claim but will also help prevent claims in the first place. It is generally very affordable and can be purchased alongside a notary bond.
Types of Bonds
Many states require notaries to obtain a bond before they can be licensed. It is to provide financial protection for individuals and businesses that rely on notarized documents. The bond works to reimburse them for any losses caused by the notary’s unintentional mistakes or fraud.
The bond reflects an agreement between three parties:
- The state.
- The surety company underwrites the bond.
- The notary public must repay the bond if a claim is made against them.
The notary should also consider acquiring errors and omissions (E&O) insurance. It is relatively inexpensive and will cover claims for negligence and mishandling of documents. When selecting a surety bond, the notary should be cautious of companies that offer a package deal of bonds and seals, as these may cost more than necessary. Also, the notary should be wary of mailings that suggest a commission expiration date for the stamp. It is false information and should be disregarded.
Requirements
Notaries are required to purchase bonds before they can start performing notarial acts. These bonds ensure that notaries adhere to their profession’s laws and regulations. If a notary fails to do so, they can be sued by those who hire them for their services. These claims can be financially devastating to businesses and individuals, so the bonds step in to provide reparation. Purchasing a notary bond is a simple process. Choose a reputable bonding company authorized to issue bonds in your state and complete the application. You’ll be asked to provide personal information and details about your notary commission. Once the bond has been approved, it’s typically filed with the government agency overseeing notaries in your state. It’s important to note that notary bonds differ from errors and omissions (E&O) insurance. A notary bond covers the public, while E&O insurance protects the notary from financial harm.
Premiums
A particular kind of surety bond known as a notary bond protects people who depend on notary public services. The bond amount varies by state and covers financial losses individuals suffer because of the notary’s misconduct or errors. Most states require notaries to purchase a notary bond as part of their licensing process. To obtain a notary bond, you must first choose a reputable bonding company that is authorized to offer notary bonds in your state and pay the required premium. The cost of a notary bond varies by state and is typically less than an E&O insurance policy. However, it is essential to understand the difference between the two before deciding which option is right for you. E&O policies are occurrence-based, meaning that claims made during coverage will be covered. Seals, bonds, and other custom items that must be shipped quickly must be ordered separately.
