What does a notary do?
A notary public is an official appointed position by the Secretary of State’s department in a given state. As with many public officials, the State specifies that the person obtain a notary bond prior to receiving the commission. This bond “makes sure” that when the official violates the public trust through negligence of their duties, funds are set aside to reimburse the State for its loss.
The main duty of a notary 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 causes harm to the public trust by failing in their duty to confirm identity. If a Connecticut 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 promise to pay to the obligee (the State) if losses occur for a penalty amount of the bond. Surety bonds are often provided by a surety company (typically an insurance carrier). The bond usually runs concurrently with the period of the notary’s commission.
You may be familiar with a home insurance policy. When you have a homeowners insurance in Indiana loss, the insurance carrier pays the claim and writes off the loss. You aren’t required to reimburse the carrier for the claim. Unlike a property 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 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 obtained for a nominal fee from insurance companies.
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