Posted by R. Tam on 3/16/05 1:43am
Msg #25728

$15,000 Bond

Hi! I was thinking about becoming notarized...but can any explain to me what the $15,000 bond is about?

Reply by ColleenCA on 3/16/05 7:55am
Msg #25747

It is an insurance policy that is required by the state of california that protects the party who is having documents notarized from any harm done by the notary. E&O insurance protects the notary. That is basically it in a nutshell. You can look at the Calif. Notary handbook if that is the state where you reside, but you didn't put your state with your name so that would be helpful in the future when posting. That way, other notaries from your state would be better able to respond to any questions specific to your state. Hope that helped.

Reply by John_NorCal on 3/16/05 8:02am
Msg #25749

YOU can't get notarized without the proper wording! -:}

Reply by Art_MD on 3/16/05 9:49am
Msg #25765

bond vs insurance

A bond is a guarantee by a third party that they will pay to the bonded party if you are guilty of something that the bond covers. Best by example.

A bond is required in MD for Title Insurance Producers. If someone took a check at the closing and instead of paying the title insurance premium, cashed it, the bonding company would pay (after being order to by the State Insurance Administration). With a bond, the money is there. AND, the bonding company will come after you for all costs. Bonds usually cover intentional/criminal/unlawful acts.
With insurance, the process to prove loss can be quite involved and the insurance company doesn't usually come after you.

I'm not a lawyer, its just that I've gotten involved in construction bonds over the years.

Art

Reply by Korey Humphreys on 3/16/05 9:50am
Msg #25766

Simple...... the bond protects the public from your actions. It does not protect you.

I just got my 10,0000 E&O insurance from Western Surety Company...., you should look into that because that protects you.