In our society notaries perform a very important function. They are officially regulated to act as observers of record and are seen as a critical component when it comes to many important decisions and agreements. Many individuals come across the need to use a notary at some stage during their life and it is very important for the notary to be highly professional, ethical and accurate during these dealings. As a consequence of the importance of the work they perform states across the country require them to take out specific professional surety bonds. The notary bond is intended to give the consumer the peace of mind that the individual in question has been licensed to perform the services requested. There is also a protection in the event that the notary’s work is faulty. These surety bonds allow for reimbursement to the consumer should errors be found.

It’s important to understand just how critical errors or other elements of faulty work performed by a notary could be. Important legal documents could be invalidated and this could lead to significant costs and expenses for certain parties.

The state of Louisiana licenses notaries. As such, if a claim is made against somebody who’s covered by a notary bond then this claim is essentially filed against the state itself. The insurance company essentially enters into a contract with the state and if it is necessary to pay out against the insurance then the company will pay directly to the state, up to the maximum limit covered by the bond.

Remember that the notary bond itself is intended to protect clients and is not insurance to protect the notary him or herself. There are other types of business insurance available however including errors and omissions insurance that will provide protection. While the notary will still be liable to the insurance company in the event that a claim is proven, the notary may have recourse to their errors and omissions policy in order to cover such liability.

It’s important for a notary to understand what risks can be associated with their work. Even though much of their work is in the role of an observer, to witness signatures or to administer oaths, mistakes can nevertheless be costly.

As a notary, have you talked with your insurance agent about these bonds or about errors and omissions insurance?