Notary bonds are necessary in 30 states, including Nevada and Tennessee, since they provide important coverage for mistakes (either intentional or accidental) that notaries public make while performing their duties.
A notary bond is not insurance. It is a surety bond. However, you can pay an insurance company for coverage over a 4-year term in case a claim is made against you.
This coverage is called Errors and Omissions (E&O) insurance, which is additional coverage for the notary to add to his or her notary bond.
Side Note About Errors and Omissions Insurance
Errors and Omissions insurance is designed to protect notaries from mistakes they make during their term of service.
Even though this type of insurance is optional, having some financial protection in the event of an issue is certainly worth considering.
Continue reading to understand more about the question, “What is a notary bond?”
What Is A Notary Bond Further Explored
Now that we answered, “What is a notary bond?” let’s look at who needs to purchase one.
The simple answer is that anyone who wants to become a notary public in Nevada and Tennessee needs to purchase a notary bond.
What Does A Notary Do?
Notaries officially represent their state in being a witness to the signing of important documents, such as adoption papers, financial papers, and other legal documents.
A notary notarizes documents to make sure that there is no fraud taking place in the signature of these documents, which as you can imagine, is an important job.
Notaries public are not allowed to discriminate on the basis of religion, gender, sexual orientation, and the like.
Notaries public are also not allowed to seal documents for their own self-interest.
What Does A Notary Do Continued
A notary must make sure that the signer is aware of what they are signing and that they are not being compelled to do so against their will.
It is important for a notary to verify that no forging of signatures during the signing process takes place.
Likewise, a notary is required by duty to verify the signer’s photo ID.
Before approving a document, a notary may ask the signer to present more than one form of identification if he or she feels it is needed.
Note: In Nevada, it is required by law for the notary to record what type of identification was used during the notarization.
The notary must also keep a journal of all notarial acts made throughout their term of service.
There are different things notaries watch out for while notarizing, which is a much more complex subject than can be covered in the scope of one article.
Suffice it to say, being a notary is a mentally demanding job that requires you to know the laws in your jurisdiction and be forthright in your actions.
What Are Examples of Notarial Acts?
The 13 notarial acts are as follows:
Acknowledgment, Jurat, Certify, Witness, Witness Proof, Oath, Protest, Deposition, Verifications, Certificates, Marriage, deposit box, and others.
For an in-depth explanation of these acts and how they work, click here.
Notarial Acts Example
Acknowledgment: The acknowledgment notary act is when the person signing the document says that (1) yes, this is indeed their signature and (2) it was made willingly.
What Are The Rules For A Notary To Follow?
- A notary should not notarize their own signature.
- A notary should not try to give legal advice or create a legal document.
- A notary should not sign a document they deem to be fraudulent.
- A notary should make sure a witness is physically present for the signing.
- A notary cannot sign for blood relatives or for their spouse.
- A notary cannot allow another person to use their stamp.
How Much Does Notary Bond Coverage Cost?
The state of Nevada mandates all notaries public to purchase a notary bond. The requirement is $10,000 to cover a four-year term.
$10,000 worth of coverage for four years costs around $50.
Once a notary has purchased their notary bond, they must then file it with the local county clerk.
Where To Buy A Notary Bond?
You can purchase a notary bond through an insurance company.
Contact us today.
Further Reading: An In-depth Look At Notary Bonds
For a more in-depth look at notary bonds, check out our article on the subject.