If you are working in a notarization position, then you are required to have some notary bonds, which are also known as surety bonds. These are required by the law and you not only need to purchase one, but you also need to maintain it as well. These are put into place so that the public is protected from any mistakes that might be made by an individual that is in a position of power while they were performing their various duties.
How They Work
You should be aware of just how notary bonds work and what they cover. If the individual commits misconduct or fraud that leads to a customer facing any financial loss, then they will be protected by this coverage. The customer would be able to make their claim against this instrument and the company that holds the surety would be obligated to reimburse the individual’s client the money that they lost. This is one of the few ways that is put in place to prevent people from pretending they are someone else who would lose money from the transaction. If the claim is paid out, then the surety company would be paid back by the public official.
Is it the Same as Insurance?
You might wonder if notary bonds are the same thing as insurance and the answer would be no. This instrument is just for the protection of those who are asking the public official for their signature and not for the individual themselves. If they want to be covered by insurance, then they would be required to take out another errors & omissions policy coverage from an insurance company. This will help to prevent them from being sued when they make mistakes that weren’t due to either misconduct as well as fraud.
You should make sure that you know what is needed if you are going to be a public official in the notarization sector. Not only would you need to be covered by a surety company to ensure that you would have the necessary coverage in case of fraud or even misconduct. Also, this is different from errors & omission coverage, which would cover the individual rather than the client in case they are sued. It is critical that you know what you would need to have if you are working in this industry and what you can do to get your money back if you are wronged by the public official.