Surety Bond Professionals is a family-owned and operated 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 your Louisiana notary bond needs.
What Are They?
Louisiana notary bonds function much like license and permit bonds. This is because purchasing one is a prerequisite for obtaining a notary public commission from the Louisiana Secretary of State. The bond serves as a notary’s pledge to carry out notarial duties in accordance with the statutes of the state of Louisiana and the ethical standards of the profession.
Most important, Louisiana notary bonds are the first line of defense against fraud. The responsibilities of notaries public include verifying the identity of people signing important documents, witnessing the signing, and applying a seal that authenticates the signatures.
Documents that require notarization include those that confer decision-making and/or asset management authority, transfer property, or attest to the truth of a matter. A forged signature on any of these could easily cause financial harm to an innocent party.
A Louisiana notary bond protects the state against liability for any financial losses incurred as a result of a notary’s unlawful or unethical conduct in the performance of notarial duties. It also provides a source of funds for compensating those who have a valid claim for damages caused by the notary public.
Who Needs Them?
Anyone applying for a Louisiana notary commission for the first time or renewing an expiring commission must purchase a $10,000 Louisiana notary bond. The five-year term of the bond is the same length as the term of a Louisiana notary public commission.
An award for damages could easily exceed $10,000, so it’s common for Louisiana notaries to purchase errors and omissions insurance for their own financial protection.
Speak with a Surety Bond Professionals agent today to discuss your bonding needs.
How Do They Work?
There are three parties to a Louisiana notary surety bond agreement:
- The Louisiana Secretary of State, the party requiring the purchase of the bond, is known as the “obligee.”
- The notary public, the party required to purchase the bond, is referred to as the “principal.”
- The bonding company that underwrites and approves the bond is called the “surety.”
The terms of the notary bond agreement make the principal solely responsible for paying valid claims. However, the surety will often make payment directly to the claimant after determining that the claim is valid. In effect, the surety is extending credit to the principal, which creates a debt that the principal must repay to the surety. It’s a win-win situation in that the claimant receives prompt payment, and the principal has some time to gather the funds necessary to reimburse the surety, which often can be done in installments.
What Do They Cost?
Louisiana notary bonds are not subject to underwriting. They’re sold for a small flat premium, typically about 1% of the required $10,000 bond amount, which covers the entire five-year term of the bond.
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Our surety bond professionals will get you the Louisiana notary bond you need at a competitive rate.