The downsides of being a notary include potential difficulties in maintaining a steady income, the risk of significant financial liability through lawsuits, and the accumulation of various upstart and upkeep costs.
Main Downsides of Being a Notary
While being a notary offers opportunities for community service and flexible work, there are several notable disadvantages to consider:
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Difficulty in Maintaining a Steady Income
For many notaries, especially those operating independently, securing a consistent flow of work can be challenging. Notary services are often transactional, meaning income is earned per notarization or signing appointment. This can lead to unpredictable earnings, making it difficult to rely on notary work as a sole or primary source of stable income. Success often depends on effective marketing, building a client base, and being available when needed, which isn't always guaranteed. -
Risk of Lawsuits and Financial Liability
Notaries hold a significant position of trust and responsibility. An error, omission, or misconduct in performing their duties can lead to serious legal consequences. Notaries can be sued for negligence, fraud, or failure to properly identify signers, and these lawsuits can result in substantial financial damages. While most states require a notary bond, this bond primarily protects the public, not the notary. To protect themselves, notaries often purchase Errors & Omissions (E&O) insurance, which covers legal defense costs and damages up to the policy limit, but this is an additional expense. -
Accumulation of Upstart and Upkeep Costs
Becoming a notary involves initial investments, and maintaining the commission incurs ongoing expenses. Upstart costs can include fees for the application, training courses, exams, notary bonds, and essential supplies like a notary seal/stamp and record book (journal). Beyond the initial setup, there are regular upkeep costs such as commission renewal fees, E&O insurance premiums, and potentially the cost of continuing education or updated supplies. These expenses can add up, potentially diminishing the overall profitability of the notary business, especially if income is not consistent.
Considering these factors is essential for anyone contemplating a career or side venture as a notary public, as they directly impact the financial stability and risk exposure associated with the role.
