What does a notary public do?
A notary is an appointed position by the Secretary of State’s department in a given state. As with many public officials, the State specifies that the individual get a surety bond prior to receiving their appointment. This bond “makes sure” that if the official violates the public trust through neglect of their duties, finances are set aside to indemnify the State for its loss.
The principal duty of a notary public is to ensure that the individual parties to an agreement are who they claim to be. The State may suffer a loss if the notary public fails to properly ensure the identity of the parties.
As a public official, the notary public violates the public trust by failing in their duty to confirm identity. If a Washington 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 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 generally provided by a surety company (typically an insurance carrier). The bond generally runs concurrently with the term of a notary’s commission.
You’re probably familiar with a homeowners insurance policy. When a person has a property insurance in Indiana loss, the insurance carrier pays the loss and writes off the loss. You aren’t required to reimburse the company for the loss. Unlike a homeowners insurance policy however, a notary bond is simply a guarantee that the finances will be available should 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 surety 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 Errors and Omissions and may also be obtained for a nominal fee from insurance companies.
