How Notaries protect the public
Written by Author on September 16th, 2009A notary is an official appointed position by the Secretary of State’s office in a given state. As with many public officials, the State specifies that the individual get a notary bond prior to getting the appointment. This bond “makes sure” that when the notary violates the public trust through neglect of their duties, funds are available to indemnify the State for its loss.
The principal duty of a notary public 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 fails to properly ensure 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 Arizona 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 surety bond is a promise to pay to the obligee (the State) when losses occur for a penalty amount of the bond. Notary Public bonds are usually provided by a surety company (typically an insurance carrier). The bond generally runs concurrently with the period of the notary’s commission.
You’re probably familiar with a homeowners insurance policy. If you have a rental property in Indiana claim, the insurance company pays the loss and writes off the loss. You aren’t required to reimburse the carrier for the loss. 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) 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 surety 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.