How Notaries protect the public
A notary public is an official appointed position by the Secretary of State’s department in a given state. Just like many public officials, the State requires that the person get a surety bond before getting the commission. This bond “makes sure” that if the notary violates the public trust through neglect of their responsibilities, finances are available to reimburse the State for its loss.
The primary duty of notaries 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 confirm the identity of the parties.
As a public official, the notary harms the public trust by failing in their duty to confirm identity. If a Texas 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) should losses occur for a penalty amount of the bond. Notary bonds are usually provided by a surety company (typically an insurance carrier). The bond usually runs concurrently with the period of a notary’s commission.
You’re probably familiar with a property insurance policy. When a person has an Indiana home insurance loss, the insurance carrier pays the claim and writes off the loss. You aren’t required to reimburse the carrier for the damages. Unlike a home insurance policy however, a notary bond is simply a promise that the finances 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 carrier is not simply written off. The company 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 companies.
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