A notary is an appointed position by the Secretary of State’s office in a given state. Just like most public officials, the State requires that the individual get a surety or notary bond before receiving their commission. This bond “makes sure” that if the official violates the public trust through neglect of their responsibilities, funds are set aside to indemnify the State for its loss.

The main 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 fails to properly validate 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 Idaho 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 notary bond is a promise to pay to the obligee (the State) when losses occur for a penalty amount of the bond. Notary bonds are often provided by a surety company (typically an insurance carrier). The bond often runs concurrently with the term of a notary’s commission.

You may be familiar with a property insurance policy. When you have 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 claim. Unlike a home insurance policy however, a notary bond is simply a promise that the funds will be available when 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 surety 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 carriers.

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