They say that the lottery is a tax on the dumb because they have the option of buying and they choose to buy. When people say that Notary Public Insurance is a tax on notaries, they mean it is an avoidable expense that notaries are choosing to pay. However, even if it is technically avoidable, does that mean it is dumb or some sort of tax? After all, putting on your seat belt in your car is optional. Replacing old tires on your car is optional and avoidable, but most people are smart enough to do it.
Is This Another Way To Eat Notary Margins?
If you want to run a legitimate notary business or service, then you may feel like the odds are stacked against you. Even if you ignore the cost of running a business, the cost of minimum wage, the cost of business and liability insurance, and so forth, you are still being hit with other expenses. Taxes are pretty unfair on notaries, and there are legal restrictions on how much a notary can charge. After all these bills and expenses, is getting notary insurance just another expense? Is it just another way of eating into a notary’s profit margins?
Notary Insurance is Your Safety Net
As a notary, it is very easy to get sued. There are quite a number of things that you can do, often negligent acts, where you may get sued. Even some of the commonly-accepted features of notary services, like out-service notaries and having other people do the notarizing, can land somebody in a lot of trouble.
Errors and omissions insurance can help a notary avoid long legal battles and lots of out-of-pocket expenses, including the amount they are sued for. Errors and Omissions insurance is designed to protect notaries if they make a mistake. They are pretty much covered if it is shown their mistake was not done out of rank negligence. It is also designed to protect notaries if they are the victim of a false claim. Coverage for errors and omissions insurance covers legal defense costs, legal fees, and court costs.
Won’t My Bond Protect Me?
You may live in a state where you are asked to purchase a bond if you wish to be a notary. Some people think this bond is unfair because it only allows those with money to ply their notary trade. On the other hand, it means the notary has something at stake and something to lose, which one hopes will stop the notary from acting with negligence or improper protocol.
Yet, the surety bond, only goes so far in protecting the notary. Even with that said, the notary is not overly protected since it is the notary who loses the money if something goes wrong. The bond is a state requirement in some states, and it too is supposed to protect the public from unintentional errors and negligent mistakes.
If you make a human error, you can protect your bond with insurance. Instead of the general public being allowed to dip into your bond like a nacho into salsa, the problems are fought in court using your insurance money, and if you lose, then your bond money can be repaid using insurance claim. That is why you should seriously consider getting Notary Public Insurance from Mona’s Insurance. You get a fair price and plenty of robust protection for your business, your profit margins, and your surety bond.