A notary bond is a contract that guarantees notary will do the task ethically and within the law. It is a legally binding guarantee. When the notary fails to do their duties properly, the state will claim with the person who was harmed because of the action of the notary. And if the claim stays valid, the bond amount will be used as reimbursement by the harmed parties, and so both the consumer in a financial loss as well as the state will be protected.
What is the Cost of Notary Bond?
The expense of a notary bond differs from one state to another since each state has its very own bonding demands for notaries. Nevertheless, notary bonds are a few of the quickest and easiest bonds to provide because they are released quickly without any underwriting.
Why do notaries need a surety bond?
Not all states require notaries to be bonded, so make certain to inspect your state’s needs to see if you require purchasing a notary bond. States such as Arizona have Arizona Notary Bond because notaries are entrusted with a great deal of lawful authority, as well as errors made by them can trigger major damage to their customers. Having a guaranty bond makes certain the customer that they will be shielded if their notary does glitch.
What are mistakes and omissions insurance policy?
Mistake and non-inclusion insurance policy is an optional add-on to a notary surety bond that secures notaries in case a customer seeks monetary compensation as a result of a mistake made by the notary. This is different than a guaranty bond because the bond is focused on shielding the public, whereas the E&O insurance policy is focused on safeguarding the notary. If a notary opts to purchase E&O insurance, it indicates that they will be financially shielded against a suit as much as the plan amount they have purchased.