What is a Notary Bond

The notary bond is a bond held by notary publics. A notary public is a person licensed by their state, who can legally attest to the signatures on documents. In order to ascertain the validity of a document, it is necessary that the individual be present in a face to face meeting with the notary, with photo identification for verification. Once one’s identity has been verified, the notary witnesses the signing of a document and makes it legal and binding by stamping the document with his/her seal, signing and dating it. A notary public can also administer oaths in depositions. These are typically the two duties that can be performed by notary publics throughout all fifty states. However, each state outlines the duties of their own notary publics.

Notary bonds are underwritten by private companies. It is an agreement between the state, the surety company and the notary. Due to the nature of the responsibilities of the notary, and the significant loss that can result from mistakes, the purpose of the notary bond is to help notary consumers receive due compensation in a timely manner. It should be noted that the notary bond is not insurance for the notary, and does not shift the responsibility from the notary. Most states require their notaries to secure notary bonds in amounts ranging from $5,000 to $15,000, though the cost to the notary is approximately $50. Just like other bonds issued by surety companies, it helps instill consumer confidence in the services being provided by the notary. Consumers can feel confident that they have recourse in the event that an error by a notary can render a legal document invalid, or cause other legal implications.

If an error does occur, and a claim is filed by a consumer, the claim is filed against the state. The surety company pays the state which reimburses the consumer. Though the notary has paid a fee, like other bonds, he/she is responsible for reimbursing the surety company for the claim. Notaries do have additional recourse and can purchase Errors and Omissions insurance. The purpose of this insurance is to cover any costs owed to a surety company, or to a consumer above and beyond a notary bond’s limit.

The notary bond is designed to protect consumers from any errors resulting from a notary public. It is a way to boost consumer confidence in the notary process, while affording them the protection their personal, professional and legal documents may require.