Notary surety bonds are required in many states in order to protect the public in the event a notary fails to fulfill his obligations properly. Surety bonds are issued by bonding companies. Surety bonds are also used in commercial contracts.

Definition of a Surety Bond

A surety bond is an agreement for a third party to pay funds in case a principal fails to perform a specified act. In the context of notaries, surety bonds help protect the public by providing a source of funds when a notary commits fraud or otherwise fails in his appointed office.

States that Require Surety Bonds

According to the National Notary Association, as of 2009, the following states require notaries to post surety bonds: Alabama, Alaska, Arizona, Arkansas, California, the District of Columbia, Florida, Hawaii, Idaho, Illinois, Indiana, Kansas, Louisiana, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Mexico, North Dakota, Oklahoma, Pennsylvania, South Dakota, Tennessee, Texas, Utah, Washington, Wisconsin and Wyoming.

Amount of Surety Bond

The amount a notary is required to post in bond is set by the state government. Amounts vary substantially, in the range of approximately $7,500 to $15,000. Consult your state's notary public handbook for details of what is required.

Protection

Surety bonds are not designed to protect you. They are designed to be a source of funds to pay out to the public in cases where a notary has acted negligently or criminally. If the bond has to be paid due to your negligence or fraud, the bonding company is likely to sue you in turn for the funds.

Difference from Insurance

Surety bonds are not insurance. The fee paid to the bonding company is to use their credit and guarantee of payment. Risk remains with the principal of the transaction and is not transferred.

Source:

Notary Public Handbook of California, 2009

Notary Public Handbook of Florida

National Notary Association: Notary Surety Bonds

More Information:

National Notary Association