A notary is an appointed position by the Secretary of State’s department in a given state. As with many public officials, the State requires that the individual get a surety or notary bond prior to getting the appointment. This bond “makes sure” that if the notary violates the public trust through negligence of their duties, finances are available to reimburse the State for its loss.

The main duty of notaries public is to confirm that the individual parties to an agreement are who they claim to be. The State may experience a loss if the notary public fails to properly validate the identity of the parties.

As a public official, the notary public causes harm to 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 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 generally runs concurrently with the period of a notary’s commission.

You may be familiar with a homeowners insurance policy. If 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 loss. Unlike a property insurance policy however, a notary bond is simply a guarantee that the funds will be available should losses occur. The surety (insurance company) pays the State up to the penalty amount of the bond. However, this claim paid by the surety 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 may also be obtained for a nominal fee from insurance carriers.