What You Need to Know about Requirements for Bonds for Errors and Omissions
People often are confused by the requirements that many states have for a bond in order to practice in a certain field. Although there are slight differences in the requirements of a bond from one field of practice to another, there are common denominators. The following are a few things you should know about a surety bond.
A surety bond for a notary
Every state will require a notary to have a surety bond before they will allow you to operate as a notary. The reason for this is to protect the public from any mistakes that you make that leads to a loss of money. Your customers are protected if this should happen. This type of bond varies in the amount you are required to have by the state you reside in. You won’t have to spend the full amount of the bond. You only need a fraction of the bond. In this situation, it acts like an insurance policy. These bonds, like a notary commission, are not forever. Usually, you will need to renew your license and your bond every four years.
Another type of bond
A similar type of bond that certain professions need is an employee dishonesty bond. Basically, it covers the actions of employees in the case of errors and commissions made by the employee that lead to a financial loss for your client. If you have a notary business, you will need to have this type of bond if you decide to hire someone to assist you in some of the work. These bonds can cover one employee or several employees. Of course, there is also insurance for this type of liability. Often called errors and omissions insurance, this is common for many professions, such as a law practice. An insurance policy like this can be paid for with one payment covering a specific period of time, just like other types of insurance policies, but you can also make monthly premium payments. A surety bond is usually paid for with a single payment.