Why a Notary Bond?
A notary public is an official appointed position by the Secretary of State’s department in a given state. Just like most public officials, the State specifies that the person get a surety or notary bond before receiving the appointment. This bond “makes sure” that when the notary violates the public trust through neglect of their duties, finances are available to indemnify the State for its loss.
The main responsibility of notaries public is to validate 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 violates the public trust by failing in their responsibility to confirm identity. If a West Virginia notary public doesn’t confirm identity and a loss occurs, an injured party can file a claim against that State for their loss, because the State was negligent through its appointed representative.
A surety bond is a guarantee of payment 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 often runs concurrently with the period of a notary’s commission.
You’re probably familiar with a homeowners insurance policy. When you have an Indiana home insurance 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 home insurance policy however, a notary bond is simply a guarantee that the funds will be available if losses occur. The surety (insurance company) pays the State up to the penalty amount of the bond. However, this claim paid by the company is not simply written off. The carrier 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 Public E & O and can also be obtained for a nominal fee from insurance carriers.
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