Posted by Lana Bethke on 2/16/07 12:44pm
Msg #176025

surety bond question

Hello,
I'm gonna have my notary exam in couple of weeks and I have a question about 15,000 surety bond that a notary public should purchase.
I understand that is done for the public protection.
what I don't unsderstand ( and it would seem like a stupid question to all professionals here) is that- Do I really have to BUY it? I mean does it mean that I actually would have to invest 15,000 myself? Do I have to have 15,000 $ on my account? Please help me solve that problem
Thank you very much
Lana

Reply by Larry/Ca on 2/16/07 12:51pm
Msg #176027

It is required in California. Mine cost $35

Reply by Dave_CA on 2/16/07 12:52pm
Msg #176028

Yes

you must have the required bond in order to receive your commission.
E&O insurance is optional but may be required by many of the companies who will contract for your services and is also a very good idea.
You may purchase both here on Notary Rotary.

Reply by Lana Bethke on 2/16/07 12:57pm
Msg #176030

Re: Yes

yes, I know that I have to ahve it. but my question is that- those 15,000 bond- I would have to pay that ammount of money in order to get my notary public commission?
or seens its like an insurance money, I would have to pay just few dollars and kind of 'qualify' for taht 15,000.
Because if I would have to actually PAY myself that ammount in order to get my commition- in CA, I think I better cancel my exam then.
thanks a lot for your help
Lana

Reply by SharonMN on 2/16/07 1:14pm
Msg #176037

Re: Surety Bond

Lana, you don't have to pay $15,000. There are two things you should have (this is how I understand it - bond is not required in my state so I can't guarantee that this is right).

1. Bond is required in CA - you pay a small amount of money and then anyone that has a claim against you in relation to notary work can go to the bond company and get their claim paid. That way, if you disappear, the person with the claim still has recourse. The problem is, the bond company then comes to you for reimbursement.

2. Therefore, you should also purchase E&O insurance, which is also inexpensive (mine is $23.50 per year for $25,000 of coverage) and covers you for any notary mistakes you make. Caution: Notary E&O Insurance is very specific in only covering notary act mistakes and will not cover you for mistakes you make as a signing agent, such as mailing the docs back to the wrong party.

Reply by Lana Bethke on 2/16/07 1:18pm
Msg #176039

Re: Surety Bond

Thank you very much, Sharon,
your answer was more than clear. thank you for all the info.
I really appreciate your help
Lana

Reply by Gerry_VT on 2/16/07 1:09pm
Msg #176035

You only have to spend around $35, as long as you don't screw up. But the bond protects the public, not you. So if you screw up and the bonding company has to pay out the $15,000, they're coming after you to get it back. That's why you might want errors and ommisions insurance; that's to protect you.

Reply by Lana Bethke on 2/16/07 1:13pm
Msg #176036

oh, thank you so much!!!
you really helped me to uderstand it
and that E&O works like regular insurance? you pay a fee annually? do you know how much are those fees are?
thank you again
Lana

Reply by Kate/CA on 2/16/07 1:18pm
Msg #176038

Lana, you should also get Insurance. If you ever have to use the bond, it will need to be paid back and that is what the insurance is for. Call a company that deal with these issues.

Reply by Charles_Ca on 2/16/07 1:29pm
Msg #176040

Bonds and E&O are sold on this site ~ its cheaper and better n/m