What Housing Organizations Should Know About Notary Bonds

If your housing organization employs notaries, whether for certifying documents, verifying resident information, or handling legal paperwork, it’s essential to understand notary bonds and the protection they provide.

A notary bond is a type of surety bond that protects the public, not the notary. It serves as a financial guarantee that the notary will perform their duties in accordance with state laws and regulations. If the notary makes a mistake or engages in misconduct that causes financial harm, the injured party can file a claim against the bond.

Here’s how it works:

• The surety company (which issues the bond) pays valid claims to affected parties.
• The notary is then responsible for reimbursing the surety company for those costs.

This system ensures accountability while offering recourse for individuals who rely on notarized documents.

What does a notary bond cover?

• Financial losses due to the notary’s negligence, misconduct, or failure to follow proper procedures.
• Legal compliance, ensuring that notarial acts meet state-specific requirements.
• Public protection—the bond does not protect the notary personally. For that, separate errors and omissions (E&O) insurance is recommended.

Do all states require notary bonds?

No, but many states do require notary bonds as part of their commissioning process. These states include:

·        Alabama ·        Alaska ·        Arizona ·        Arkansas ·        California ·        District of Columbia ·        Florida ·        Hawaii ·        Idaho ·        Illinois

·        Indiana ·        Kansas ·        Kentucky ·        Louisiana ·        Michigan ·        Mississippi ·        Missouri ·        Montana ·        Nebraska ·        Nevada

·        New Mexico ·        North Dakota ·        Oklahoma ·        Pennsylvania ·        South Dakota ·        Tennessee ·        Texas ·        Utah ·        Washington ·        Wisconsin

Each state sets its own bond amount and requirements. It’s important for housing organizations to stay informed and ensure their notaries are compliant with local laws.

What does a notary bond cost?

The premium for a notary bond is typically a small percentage of the total bond amount. For example:

• A $10,000 bond may cost anywhere from $38 to $150, depending on the state and the notary’s creditworthiness.

Why it matters for housing organizations

Notaries play a vital role in many housing-related transactions. Whether you're processing lease agreements, affidavits, or legal certifications, improper notarization can expose your organization to risk.

By ensuring your notaries are properly bonded and trained, you protect:

• Your residents
• Your organization’s reputation
• Your compliance with state regulations

Need help with notary bonds?

HAI Group is here to help. If you have questions about notary bond requirements or need support obtaining coverage, our Account Services team is just a call or email away. We’ll help ensure your organization is properly protected and compliant with state laws.