Michigan 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 Michigan notary bond needs.
What Are They?
Notaries play an important role in preventing fraud by witnessing the signing of important documents and attesting to the identity of the signer. Michigan notary bonds are a type of license and permit surety bond intended to ensure that every notary public commissioned by Michigan’s Secretary of State carries out their notarial duties in a lawful and professional manner.
A Michigan notary bond serves as the notary’s pledge to perform the duties associated with a notary public commission in accordance with applicable laws and professional standards. It also provides a source of funds for compensating individuals incurring a financial loss if the notary fails to live up to that pledge. Thus, the bond protects the state against liability for commissioning an unethical or negligent notary. It also provides a source of funds for compensating consumers harmed by the notary’s actions.
Many notaries choose to protect themselves financially by purchasing errors and omissions insurance to cover any additional damages that must be paid in excess of the required bond amount of $10,000.
Who Needs Them?
Anyone applying to the Michigan Secretary of State (the “obligee” in the surety bond agreement) for a new commission as a notary public must first obtain a Michigan notary surety bond in the amount of $10,000. The bond must have a duration of six years, which is how often a Michigan notary public commission must be renewed. A new bond is required at every commission renewal.
Speak with a Surety Bond Professionals agent today to discuss your bonding needs.
How Do They Work?
When the unlawful, unethical, or negligent actions of a Michigan notary public (the “principal”) cause someone to suffer a financial loss, the injured party has the right to file a claim against the surety bond. If the investigation conducted by the surety bond company (the “surety) finds the claim to be valid, it will be paid.
A valid claim is paid by the surety, drawing down the $10,000 credit line established for the principal by the surety at the time the bond is issued. This advance payment made by the surety on behalf of the principal creates a debt that the principal must repay, which can usually be done in a series of installments.
What Do They Cost?
The premium cost for a Michigan notary bond is a small percentage of the required $10,000 bond amount. Because of the risk the surety assumes in extending credit to the principal to pay claims, the surety’s main consideration in setting the premium is the principal’s personal credit score. Other factors entering into that decision are the principal’s financial stability and any previous claims history.
The less risk the surety perceives in issuing a Michigan notary bond, the lower the premium. A Michigan notary deemed by the surety to be creditworthy will typically pay a premium as low as $30.
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Our surety bond professionals will get you the Michigan notary bond you need at a competitive rate.