Arkansas Notary Bond $7,500 without EO 

What is a Notary Bond?

A notary bond is a financial guarantee required by the state to protect the public from errors, misconduct, or negligence by a notary public. It ensures that if a notary’s actions cause financial harm to an individual, the injured party can file a claim against the bond to recover damages. While the bond protects the public, it does not shield the notary from liability; the notary is responsible for reimbursing the bonding company for any paid claims.

The $7,500 Requirement in Arkansas

In Arkansas, notaries must obtain a $7,500 bond as a prerequisite for their commission. This amount represents the maximum financial protection available to claimants for damages resulting from a notary’s errors or misconduct. The bond must be issued by a surety company authorized to operate in Arkansas and remain active throughout the notary’s commission term, which is typically 10 years.

Notary Bond Without Errors and Omissions Insurance

While a notary bond protects the public, it does not safeguard the notary against personal financial liability. Errors and Omissions (EO) insurance, often sold alongside notary bonds, provides this protection. EO insurance covers the notary’s legal fees and settlements if they are sued for unintentional errors made during their duties.

Opting for a notary bond without EO insurance is permissible but comes with risks. Without EO insurance, notaries are personally liable for reimbursing the surety company for claims paid out under the bond. This can lead to significant financial burdens if a claim is filed.

Why Some Notaries Choose Not to Purchase EO Insurance

1. Cost Considerations: EO insurance requires an additional premium, and some notaries may decide it’s an unnecessary expense if they have a low-risk practice.

2. Limited Liability: Notaries with minimal transaction volumes or those operating in low-risk environments may perceive their likelihood of making an error as negligible.

3. Regulatory Compliance Focus: Since EO insurance is not required by Arkansas law, some notaries focus solely on meeting the mandatory bond requirement.

How to Obtain a $7,500 Notary Bond in Arkansas

Securing a $7,500 notary bond is straightforward. Follow these steps:

1. Apply for Notary Commission: Begin by applying for a notary commission through the Arkansas Secretary of State’s office.

2. Select a Bond Provider: Choose a licensed surety company or bonding agency authorized in Arkansas. Many companies offer affordable bond packages specifically tailored for notaries.

3. Submit Bond Information: Once approved, submit the bond details to the Secretary of State’s office as part of the commissioning process.

4. Receive Commission Certificate: After approval, you’ll receive your notary commission certificate, allowing you to officially perform notarial acts.

Conclusion

The $7,500 Arkansas notary bond is an essential safeguard that ensures public protection against potential notary errors or misconduct. While it’s possible to operate without EO insurance, notaries should carefully assess their exposure to risk and decide whether additional protection is prudent. By understanding the purpose and limitations of the notary bond, Arkansas notaries can uphold their responsibilities while protecting the public and themselves.

Frequently Asked Questions

Is a notary bond refundable if I cancel my commission early? 

No, most surety companies do not offer refunds for unused portions of a notary bond once issued.

Can I purchase EO insurance later if I initially opted out? 

Yes, EO insurance can be purchased at any time during your commission term to provide additional protection.

What happens if my bond is canceled by the surety company? 

If your bond is canceled, you must secure a replacement bond immediately to maintain your notary commission in good standing with the state.