Arkansas Notary Bond $7,500 with $10,000 EO

What is an Arkansas Notary Bond?

A notary bond is a type of surety bond required by the state to protect the public from any errors or misconduct by a notary public. In Arkansas, all commissioned notaries are required to obtain a $7,500 bond before they can perform notarial acts. This bond serves as a financial guarantee that the notary will perform their duties ethically and in accordance with the law.

If a notary’s error or misconduct causes financial loss to a client, the bond ensures that the injured party can file a claim for damages up to the bond amount. Importantly, the bond does not protect the notary directly; it protects the public. The notary is responsible for repaying the bond company if a claim is paid on their behalf.

Why $10,000 Errors and Omissions (E&O) Insurance is Important

While a notary bond is required, Errors and Omissions Insurance is optional but highly recommended. E&O insurance protects the notary from personal financial loss due to mistakes or unintentional omissions during notarization.

Here’s how E&O insurance complements a notary bond:

Coverage for Mistakes: If a notary inadvertently makes an error that causes financial harm, E&O insurance covers the costs of claims up to the policy limit. This protection extends beyond the $7,500 required bond.
Legal Defense Costs: E&O insurance often includes coverage for legal fees if the notary is sued, even if the claim is unfounded.
Peace of Mind: Knowing you have $10,000 in E&O insurance can reduce stress and allow you to focus on your notarial duties without fear of financial ruin from honest mistakes.

By combining a $7,500 notary bond with $10,000 E&O insurance, notaries create a strong safety net for both the public and themselves.

How to Obtain a $7,500 Notary Bond and $10,000 E&O Insurance in Arkansas

Obtaining a notary bond and E&O insurance in Arkansas is a straightforward process:

Select a Bond and Insurance Provider: Many companies specialize in notary bonds and E&O insurance. Choose a reputable provider that offers competitive rates and comprehensive coverage.
Complete the Application: You’ll need to provide basic information, such as your name, address, and notary commission details.
Pay the Premium: The cost for a $7,500 notary bond is usually affordable, ranging between $50 and $100 for a four-year term. Adding $10,000 E&O insurance typically increases the cost slightly but is still cost-effective.
Receive Your Bond and Insurance: Once you’ve completed the application and paid, the provider will issue your bond and insurance certificate.
File the Bond with the State: Submit the bond to the Arkansas Secretary of State’s office as part of your notary application or renewal process.

Benefits of Combining a Notary Bond with E&O Insurance

Compliance: A $7,500 notary bond ensures compliance with Arkansas law.
Enhanced Protection: E&O insurance adds a layer of financial security for the notary.
Professional Credibility: Having both a bond and E&O insurance demonstrates professionalism and a commitment to excellence.

Conclusion

Securing an Arkansas Notary Bond of $7,500 with $10,000 Errors and Omissions Insurance is a wise investment for notaries. While the bond fulfills state requirements and protects the public, E&O insurance provides essential protection for the notary against financial loss from unintentional errors. Together, these tools help notaries perform their duties with confidence, ensuring trust and reliability in their services.

Frequently Asked Questions

Can I use my notary bond to cover personal liability?

No, a notary bond is designed to protect the public, not the notary. Personal liability can only be covered through Errors and Omissions Insurance.

What happens if a claim is filed against my bond?

If a claim is made and paid out by the bond provider, you are required to reimburse the bonding company for the amount paid. This is why E&O insurance is a valuable addition.

Is E&O insurance transferable if I change states?

Generally, no. E&O insurance policies are state-specific and tied to your notary commission. You would need a new policy if you become a notary in another state.