A notary public is an official appointed position by the Secretary of State’s department in a given state. Just like most public officials, the State requires that the individual get a notary bond before receiving their commission. This bond “makes sure” that if the notary violates the public trust through negligence of their responsibilities, funds are set aside to indemnify the State for its loss.
The primary responsibility of notaries public is to ensure that the individual parties to an agreement are who they claim to be. The State may experience a loss if the notary public fails to properly validate the identity of the parties.
As a public official, the notary public harms the public trust by failing in their responsibility to confirm identity. If an Arizona notary public doesn’t confirm identity and a loss occurs, an injured party can file a claim against that State for their loss, because the State was negligent through its appointed representative.
A notary bond is a promise to pay 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 usually runs concurrently with the term of a notary’s commission.
You’re probably familiar with a home insurance policy. If a person has an Indiana home insurance claim, the insurance company pays the claim and writes off the loss. You aren’t required to reimburse the carrier for the damages. Unlike a homeowners insurance policy however, a notary bond is simply a promise that the finances will be available when 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 carrier 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 purchased for a nominal fee from insurance carriers.
