Many states require notaries to obtain a notary bond to protect the public from financial harm resulting from mistakes or wrongdoing by the notary. Some also require notaries to purchase errors and omissions insurance.
A notary bond is a type of surety bond. It protects the obligee (the person the notary harms) in case of a claim payout.
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Cost
A notary bond is required by law in most states. It aids in defending the general public against monetary losses brought on by a notary’s carelessness or misconduct. The cost of the bond varies by state.
The best way to determine the costs and requirements in your specific jurisdiction is to contact an experienced surety bond agency. Look for a reputable company known for its guidance and seamless transactions.
Ensure the Illinois notary bond package includes your choice of 15-50k Errors & Omissions Insurance (E&O). It’s also important to remember that renewals can add up and are usually due at the same time as the initial bond purchase.
Some companies may send you mailings offering a bond package deal with stamps, but this needs to be more accurate and should be considered. Make sure to only work with a licensed and accredited notary bond provider. Please keep a copy of the bond for your records and renew it on time to maintain your status.
Requirements
Some states require individuals applying to become notaries to purchase surety bonds. This is a sign of their pledge to uphold notarial law. Additionally, it offers a source of money to compensate for any losses someone may have suffered financially due to the notary’s carelessness or wrongdoing.
The bond is a three-party agreement between the state, the bond underwriter, and the notary. The notary must pay the claims made against them; if they do not, they can be sued for the entire claim amount.
Some people confuse the notary bond with errors and omissions insurance (E&O), but they are distinct. While both offer compensation to parties harmed by notaries, the E&O is a business insurance policy that covers notaries for their professional mistakes. Please read our blog post about the distinctions between the two kinds of insurance policies for more details. You can also find additional tips for buying the right notary bond package.
E&O Insurance
Notaries must also carry error and omissions insurance (E&O). It covers legal fees and expenses up to your policy limit if a client files a claim against you. This coverage is essential because even a tiny mistake can cause financial harm to your clients.
Without E&O insurance, if a client files a claim against you, the surety company that underwrites your bond will demand repayment from you. This can leave you in a precarious situation, including wage garnishment and liens on your personal property like your home.
If you’re a notary, they offer E&O policies through the NNA that can protect you from costly claims. Get a quote today and get the protection you need. Whether you’re a notary in the traditional sense or are expanding into remote and electronic notarization, this type of insurance is an essential part of your notary bond package. Often, it’s included in the cost of your surety bond.
Customer Service
Choosing a bond company that provides good customer service is essential for notaries. They place their professional reputation in the hands of the Bond company and need a partner who offers efficiency, educational support, and industry integrity.
A notary public bond guarantees that a notary will carry out their duties by the laws and regulations of the state. If a notary fails to comply with these rules and causes a financial loss for someone, they can be held responsible by a claim filed against their bond.
Errors and omissions insurance, or E&O, is another form of protection notaries can buy to help cover the cost of any claims against their bonds. While every state does not require it, it is a wise addition to a notary bond package.
