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Notary Bonds
Notary surety bonds are required by many states when
obtaining or renewing a notary commission and are often part of the
notary application or renewal process. The surety bond helps to protect
the public from the notary's action or inaction through an agreement
to pay the obligee in an amount up to the bond coverage amount in the
event of a harmful act by the notary. The obligee is one of three parties
to the surety bond contract:
- The principal: this is the notary public, the person being bonded.
- The obligee: this is the state, the party being paid if a claim is made against the bond.
- The surety: the surety company exists to guarantee payment of claims on the bond and has a right to recover any monies paid from the notary. In this sense, the notary public is NOT protected from financial harm by the surety bond and may want to carry notary errors & omissions insurance to protect themselves.