A notary 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 individual get a surety or notary bond before getting the appointment. This bond “makes sure” that when the official violates the public trust through neglect of their responsibilities, finances are available to indemnify the State for its loss.

The principal responsibility of notaries is to ensure that the individual parties to a contract are who they claim to be. The State may suffer a loss if the notary public neglects to properly ensure the identity of the parties.

As a public official, the notary causes harm to the public trust by failing in their responsibility to confirm identity. If a notary public in Florida 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) should 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 generally runs concurrently with the term 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 loss and writes off the loss. You aren’t required to reimburse the company for the damages. Unlike a property insurance policy however, a notary bond is simply a guarantee that the finances will be available if 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 Errors and Omissions and may also be purchased for a nominal fee from insurance carriers.

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