Notary Bonds
A notary bond is a surety bond that many states require before they commission or recommission a notary public. The bond guarantees that you will perform your notarial duties according to state law, and it gives members of the public a way to recover money if your mistakes or misconduct cause them a loss. The amount, term and filing rules are set by each state, so the right bond depends on where you are commissioned.
How a notary bond works
The bond is an agreement among three parties: you, the notary (principal); the state that commissions notaries, often through the Secretary of State (obligee); and the surety that issues it. For example, if you notarize a signature without properly identifying the signer and someone loses money because of a forged document, they may be able to make a claim against your bond. If the claim is valid, the surety pays up to the bond amount.
Bond amount and your premium
Your state sets the bond amount, and it is the most the surety will pay on claims, not the price you pay. Amounts vary widely: California requires $15,000, Texas $10,000 and Florida $7,500, while some states require as little as $500. Some states, such as New York, don't require a bond for traditional notaries at all. Notary bonds are usually among the least expensive surety bonds, and your surety will quote the premium for your state's required amount.
What a claim can involve
A claim usually comes from a notarization that didn't follow state law. Depending on your state, claims may involve:
- Notarizing a signature without properly verifying the signer's identity.
- Notarizing for someone who didn't personally appear before you, where state law requires it.
- Completing a notarial certificate with false or incorrect information.
- Other violations of your state's notary laws that cause someone a financial loss.
Notary bond vs. E&O insurance
A notary bond protects the public, not you. If the surety pays a claim, you must repay it. Errors and omissions (E&O) insurance is different: it is optional coverage that protects you by paying for claims and legal costs from honest mistakes, up to its limit. Many notaries carry both, since the bond is required and E&O protects their own finances.
What happens when a claim is filed
Someone who believes your notarization caused them a loss can make a claim against your bond, and the state may also review a complaint against your commission. The surety investigates the claim separately. If the claim is not valid, it is denied. If it is valid, the surety pays the claimant up to the bond amount and you must repay the surety. You may also be personally liable for losses beyond the bond amount.
Keeping your bond in force
A notary bond usually runs for the length of your commission, often four years, and you need a new bond each time you are recommissioned. Your state may require you to file the bond within a set time after your commission is approved, so don't wait. If your name or address changes, check whether your state requires an updated bond or rider.
Not sure which bond you need?
WWIS is based in Litchfield Park, Arizona, is licensed in all 50 states and has helped notaries and businesses with surety bonds for more than two decades. Call 888-518-8011 or email [email protected] and we'll help you find the right bond for your notary commission.
If you or your business needs help in obtaining a surety bond or commercial insurance give us a call!