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 requires that the person obtain a notary bond before receiving their commission. This bond “makes sure” that if the notary violates the public trust through neglect of their responsibilities, finances are available to indemnify the State for its loss.

The primary duty of notaries is to validate that the individual parties to a contract are who they claim to be. The State may suffer a loss if the notary forgets to properly validate the identity of the parties.

As a public official, the notary public harms the public trust by failing in their duty to confirm identity. If a North Dakota 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 promise to pay to the obligee (the State) if losses occur for a penalty amount of the bond. Notary Public bonds are often 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 a homeowners insurance in Indiana claim, the insurance company pays the loss 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 promise that the funds 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 loss paid by the surety is not simply written off. The company 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 E & O and may also be obtained for a nominal fee from insurance companies.

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