Florida Notary Bonds
Surety Bond Professionals is a family-owned and operated bonding agency with over 30 years of experience. With access to a broad range of surety markets, our expert agents are ready to assist with all of your Florida notary bond needs.
What Are They?
Notaries play an important role in maintaining the integrity of important financial transactions and legal processes by verifying signatures on documents such as wills, powers of attorney, affidavits, property titles, contracts, and so on.
A Florida notary bond is a type of license and permit surety bond. Purchasing one is a mandatory step in obtaining or renewing a notary commission. It serves as a notary’s promise to fulfill his or her notarial duties in accordance with state law and the ethical standards of the profession. It also guarantees that a party suffering a proven financial loss as a result of the notary’s unlawful and/or unethical actions will be compensated for that loss.
Who Needs Them?
Anyone applying for a new notary commission in Florida or renewing an existing one must purchase a $7,500 Florida notary bond with a term of four years. That’s how long a Florida notary commission is good for—four years. That $7,500 is the required bond amount, also known as the bond’s penal sum.
Speak with a Surety Bond Professionals agent today to discuss your bonding needs.
How Do They Work?
In selling a Florida notary bond, the surety bond company (the “surety” for short) establishes a line of credit that will serve as a source of funds for paying valid claims against the bond. Typically, the surety will pay a valid claim on behalf of the notary, which creates a debt that the notary (the bond’s “principal”) owes to and must repay to the surety.
Imagine that a notary accepts a forged document as proof of identity for someone signing a fraudulent power of attorney that is then used to embezzle funds, causing the victim a $12,000 loss. The surety pays $7,500, the full penal sum, to the claimant. The notary must subsequently repay the $7,500 debt to the surety, which often is done in installments.
That leaves the notary still owing $4,500 on the claim. That’s why many notaries purchase errors and omissions insurance along with the required Florida notary bond. This helps to cover the full amount of a claim plus any legal fees and court costs. This also prevents them from having to borrow from and repay the surety.
What Do They Cost?
Florida notary bonds are sold on a premium basis, for a small percentage of the required penal sum. Because the surety’s main concern is being repaid for credit extended to the notary for the purpose of paying a claim, the primary consideration in setting the premium rate is the notary’s personal credit score. The assumption is that a notary with a good credit history will most likely repay the surety without the need for legal action.
A notary with a good credit score should be able to purchase a Florida notary bond for a premium rate between 1% and 3%.
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Our surety bond professionals will get you the Florida notary bond you need at a competitive rate.