A notary is an appointed position by the Secretary of State’s department in a given state. Like most public officials, the State specifies that the person obtain a surety bond before receiving their commission. This bond “makes sure” that when the notary violates the public trust through neglect of their responsibilities, finances are set aside to reimburse the State for its loss.

The primary responsibility of notaries public is to validate that the individual parties to a contract are who they claim to be. The State may experience a loss if the notary fails to properly validate the identity of the parties.

As a public official, the notary public harms the public trust by failing in their duty to confirm identity. If an Idaho 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 guarantee of payment to the obligee (the State) if losses occur for a penalty amount of the bond. Notary Public bonds are often 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 homeowners insurance policy. When a person has an Indiana home insurance loss, the insurance company pays the claim and writes off the loss. You aren’t required to reimburse the carrier for the claim. Unlike a property insurance policy however, a notary bond is simply a promise that the finances will be available if losses occur. The surety (insurance company) pays the State up to the penalty amount of the bond. However, this claim paid by the company 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 Errors and Omissions and can also be obtained for a nominal fee from insurance carriers.