A notary is an appointed position by the Secretary of State’s department in a given state. Just like most public officials, the State requires that the person get a surety or notary bond before receiving the commission. This bond “makes sure” that if the notary violates the public trust through neglect of their duties, funds are set aside to indemnify the State for its loss.
The primary duty of a notary is to confirm that the individual parties to an agreement are who they claim to be. The State may suffer a loss if the notary public fails 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 duty to confirm identity. If a Washington 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 notary bond is a guarantee of payment to the obligee (the State) if losses occur for a penalty amount of the bond. Notary Public bonds are generally provided by a surety company (typically an insurance carrier). The bond generally runs concurrently with the period of a notary’s commission.
You’re probably familiar with a home insurance policy. When you have a rental property in Indiana claim, the insurance carrier pays the claim and writes off the loss. You aren’t required to reimburse the company for the claim. Unlike a home insurance policy however, a notary bond is simply a guarantee that the funds will be available should losses occur. The surety (insurance company) pays the State up to the penalty amount of the bond. However, this loss paid by the carrier is not simply written off. The company will most likely seek reimbursement from the bonded party, 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 Public E & O and may also be obtained for a nominal fee from insurance companies.
