A notary public is an official appointed position by the Secretary of State’s department in a given state. Like many public officials, the State requires that the person get a surety bond before getting the appointment. This bond “makes sure” that if the official violates the public trust through neglect of their duties, funds are set aside to indemnify the State for its loss.

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

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

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

You’re probably familiar with a property insurance policy. When a person has a property insurance in Indiana loss, the insurance carrier pays the claim and writes off the loss. You aren’t required to reimburse the carrier for the loss. Unlike a homeowners 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 loss paid by the company 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 Errors and Omissions and may also be purchased for a nominal fee from insurance companies.

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