Notary Bonds

A notary public is a public officer who serves the public in non-contentious legal matters. Notaries are perhaps best known for notarizing documents to authenticate their signatures. However, notaries also have a wide variety of other duties, including administering oaths and affirmations and taking affidavits. They also assist with legal activities pertaining to domestic and foreign business, deeds, estate issues and powers of attorney.

Due to the sensitive and potentially important implications of their work, local or state governments usually require notaries to take out a notary bond in the state in which they do business before beginning their notary duties.

Protection

Like other surety bonds, notary bonds protect the consumer or individual receiving the bond from any errors or omissions made by the notary. This bond also ensures against any unethical behavior or dishonesty on the part of the notary during the course of business. Claims can be filed against the notary bond, and, if validated, the face value of the bond must be paid to the obligee—generally the state or local government.

Not an insurance policy

While the notary surety bond may sound like an insurance policy, it does not operate the same as insurance does. If a claim is made against the bond, the notary will be required to pay the bond's full face value to make restitution for his or her error, not the bond company. Errors and omissions insurance is a separate consideration for the notary that is usually also required by law. It should be purchased in addition a notary bond.

Costs

Notary bonds are inexpensive—around $100—and generally provide protection in amounts up to $15,000. Like most surety bonds, they can be obtained through a company that specializes in the sale and execution of surety bonds. During the approval process, the notary will be asked to provide:

• financial information
• a credit check to ensure that he or she has the credit worthiness to be issued a bond
• proof that he or she can cover the bond

If the notary's credit score or finances are less than stellar, a bond may be purchased through companies who specialize in sub par credit bonds, however, it will be more expensive.