What Is a Notary Bond and Why is it Important
As you know, a notary, also known as a notary public, is a government-licensed professional who takes witness to an assortment of legal affairs and signing of documents. The National Notary Association defines a notary as a government-appointed official to serve the public as an impartial witness in performing a variety of official fraud-deterrent acts–notarizations, notarial acts–that are related to the signing of highly important documents. Since a notary’s job requires them to work closely with legal documents day in and day out, oftentimes, they are required to get a notary bond, also referred to as a surety bond. In most cases, it’s necessary for a notary to obtain a surety bond before they are allowed to start notarizing and overseeing important documents.
Notary Bonds California
In other terms, a notary bond is a financial security document that’s created by surety–a person who is responsible for another’s performance of an undertaking, a guarantor–who is licensed in the state that it is required of. So, for example, if the state of California requires a notary to obtain a notary bond, they must seek the help of a surety who has their license in California. The purpose of a notary bond–surety bond–is to protect the public in case of financial damages that are caused by incorrect notarization. In other words, in the rare event a notary commits fraud or malpractice that could result in a client’s financial loss, the notary bond will protect that client. Later, they will have the opportunity to file a claim against the company they received the bond from for a reimbursement of the money they lost. It will fall into the hands of the notary at fault to pay back the funds to the surety company once the client is reimbursed.
The concept of a notary bond often gets confused with the concept of insurance, however, a notary bond IS NOT a form of insurance for the notary. Notary bonds were created specifically to serve as a form of protection to the public. However, if a notary wants to protect themselves against lawsuits, the can invest in an Errors & Omissions policy.
The amount a notary bond can be worth ranges depending on the state they are purchased in. Typically, they can be as low as $500 and as high as $25,000. However, the price to invest in a notary bond is different than the amount they are worth. Again, depending on the state you live in, the price of a surety bond spans between $30 to $100.
Surety bonds–notary bonds–are a very important investment for notary clients to take into consideration. With a surety bond, your–the public–finances will be protected in the event of an error that is made on the notary’s behalf.