A notary public is an appointed position by the Secretary of State’s office in a given state. Like many public officials, the State requires that the individual get a notary bond before receiving their appointment. This bond “makes sure” that when the notary violates the public trust through negligence of their responsibilities, funds are available to reimburse the State for its loss.
The primary duty of notaries is to confirm 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 confirm the identity of the parties.
As a public official, the notary harms the public trust by failing in their responsibility to confirm identity. If a New York 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) should 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 period of a notary’s commission.
You’re probably familiar with a homeowners insurance policy. When a person has a property insurance 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 homeowners insurance policy however, a notary bond is simply a promise that the funds 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 company 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 Errors and Omissions and may also be purchased for a nominal fee from insurance companies.
