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

The principal duty of notaries public 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 forgets 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 an Idaho 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 notary bond is a promise to pay to the obligee (the State) if losses occur for a penalty amount of the bond. Notary bonds are generally provided by a surety company (typically an insurance carrier). The bond usually runs concurrently with the period of the notary’s commission.

You’re probably familiar with a home insurance policy. If a person has an Indiana home insurance loss, the insurance carrier pays the loss and writes off the loss. You aren’t required to reimburse the company for the claim. Unlike a home 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 claim paid by the carrier 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 E & O and may also be obtained for a nominal fee from insurance companies.

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