In order to protect the people monetarily from the possibility of intentional misconduct or a negligent mistake, every notary in the state of Arizona needs to purchase a 5,000 dollar surety bond which is known as Arizona notary bond. The bond, however, is not necessarily an insurance protection for an individual as a notary.
What are the uses of such a bond?
If an individual makes an unintentional mistake or omission, it would require him to spend thousands of dollars to defend him or herself in court to prove that they are not guilty or that they have acted responsibly. However, if the claim is charged against the person’s bond, the law has to pay back for all the expenses. The individual could also be held responsible, personally, for any kind of additional cost on top of the amount of the Arizona notary bond, which might include legal fees, court costs, and other expenses.
About E&O policy
A policy in Arizona named the E&O policy is designed to protect the notaries. There are several advantages which one gains if the policy is purchased, in case of any legal matters related to the Notary. It will protect from any additional costs, but only up to the policy amount. The expenses handled by the policy in case of any legal matters are as follows:
- The policy will pay for the legal defense by an attorney who has specialized training in Notary law.
- The policy will take care of all the court costs, legal fees and all other expenses regarding the court.
- The policy does not require any deduction or repayment for any kind of loss caused.
- The policy also offers various kinds of liability based upon an individual’s needs.
These are the reasons why a policy should be purchased regarding the notary in Arizona.