Notary public responsibilities
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 prior to receiving the commission. This bond “makes sure” that if the notary violates the public trust through neglect of their responsibilities, funds are set aside to indemnify the State for its loss.
The primary responsibility of notary publics 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 fails to properly validate the identity of the parties.
As a public official, the notary harms the public trust by failing in their duty to confirm identity. If a California 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 notary bond is a promise to pay to the obligee (the State) should losses occur for a penalty amount of the bond. Surety bonds are generally provided by a surety company (typically an insurance carrier). The bond generally runs concurrently with the term of the notary’s commission.
You’re probably familiar with a home insurance policy. When a person has a rental property in Indiana claim, the insurance company pays the loss and writes off the loss. You aren’t required to reimburse the company for the loss. Unlike a home insurance policy however, a notary bond is simply a promise that the finances 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 surety 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 purchased for a nominal fee from insurance companies.