Timothy Reynold’s Blog

A notary is an appointed position by the Secretary of State’s office in a given state. Just like many public officials, the State specifies that the person get a surety bond before getting the appointment. This bond “makes sure” that if the notary violates the public trust through neglect of their duties, finances are set aside to indemnify the State for its loss.

The primary responsibility of notary publics is to ensure that the individual parties to a contract are who they claim to be. The State may experience a loss if the notary forgets to properly ensure the identity of the parties.

As a public official, the notary public violates the public trust by failing in their responsibility to confirm identity. If a Hawaii 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 guarantee of payment to the obligee (the State) when losses occur for a penalty amount of the bond. Notary Public bonds are generally provided by a surety company (typically an insurance carrier). The bond generally runs concurrently with the period of a notary’s commission.

You may be familiar with a property insurance policy. If a person has a home 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 claim. Unlike a home insurance policy however, a notary bond is simply a guarantee that the finances 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 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 Errors and Omissions and can also be obtained for a nominal fee from insurance carriers.