The IT Trader

A notary is an official appointed position by the Secretary of State’s department in a given state. Like most public officials, the State requires that the person obtain a surety or notary bond prior to getting the commission. This bond “makes sure” that when the official violates the public trust through negligence of their responsibilities, funds are available to reimburse the State for its loss.

The principal responsibility of notaries public is to ensure that the individual parties to a contract are who they claim to be. The State may experience a loss if the notary neglects to properly confirm the identity of the parties.

As a public official, the notary public causes harm to the public trust by failing in their responsibility to confirm identity. If a California notary public doesn’t confirm identity and a loss occurs, an injured party can file a claim against that State for the loss, because the State was negligent through its appointed representative.

A surety bond is a promise to pay to the obligee (the State) should losses occur for a penalty amount of the bond. Notary Public bonds are usually provided by a surety company (typically an insurance carrier). The bond generally runs concurrently with the term of the notary’s commission.

You’re probably familiar with a home insurance policy. If you have an Indiana home insurance claim, the insurance company pays the claim and writes off the loss. You aren’t required to reimburse the company for the damages. Unlike a home insurance policy however, a notary bond is simply a promise that the finances will be available should losses occur. The surety (insurance company) makes a payment to the State up to the penalty amount of the bond. However, this loss paid by the carrier is not simply written off. The surety will most likely seek reimbursement from the bonded person, the notary themself.

A notary bond protects the public. Who protects the notary? Insurance coverage is available to provide this protection – it’s called Notary E & O and may also be purchased for a nominal fee from insurance companies.