A notary is an official appointed position by the Secretary of State’s department in a given state. Like many public officials, the State specifies that the individual obtain a surety or notary bond prior to getting their commission. This bond “makes sure” that if the notary violates the public trust through neglect of their responsibilities, funds are set aside to reimburse the State for its loss.
The primary responsibility of notaries public is to ensure that the individual parties to an agreement are who they claim to be. The State may experience a loss if the notary public neglects to properly confirm 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 West Virginia 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) should losses occur for a penalty amount of the bond. Notary Public bonds are usually provided by a surety company (typically an insurance carrier). The bond usually runs concurrently with the term of a notary’s commission.
You may be familiar with a homeowners insurance policy. When you have an Indiana home insurance loss, the insurance carrier pays the loss and writes off the loss. You aren’t required to reimburse the carrier for the loss. 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 carrier 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 Errors and Omissions and may also be purchased for a nominal fee from insurance companies.