Why bond a notary public?

A notary is an official appointed position by the Secretary of State’s department in a given state. Just like most public officials, the State requires that the person get a surety or notary bond prior to receiving the commission. This bond “makes sure” that when the notary violates the public trust through negligence of their responsibilities, finances are available to reimburse the State for its loss.

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

As a public official, the notary public harms the public trust by failing in their responsibility to confirm identity. If a Texas 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 generally provided by a surety company (typically an insurance carrier). The bond usually runs concurrently with the term of a notary’s commission.

You’re probably familiar with a property insurance policy. If you have an Indiana home insurance loss, the insurance carrier pays the claim and writes off the loss. You aren’t required to reimburse the company for the loss. Unlike a property insurance policy however, a notary bond is simply a guarantee that the finances will be available when losses occur. The surety (insurance company) pays the State up to the penalty amount of the bond. However, this loss paid by the carrier is not simply written off. The carrier will most likely seek reimbursement from the bonded party, 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.