A notary public is an official appointed position by the Secretary of State’s office in a given state. Like many public officials, the State specifies that the individual obtain a notary bond prior to getting the appointment. This bond “makes sure” that when the official violates the public trust through negligence of their duties, finances are set aside to indemnify the State for its loss.
The principal responsibility of a notary public is to ensure that the individual parties to a contract are who they claim to be. The State may suffer a loss if the notary public neglects to properly validate the identity of the parties.
As a public official, the notary public causes harm to the public trust by failing in their duty to confirm identity. If a Nebraska 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 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 generally 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 loss, the insurance company pays the claim and writes off the loss. You aren’t required to reimburse the company for the claim. Unlike a property insurance policy however, a notary bond is simply a promise that the finances will be available should 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 surety 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 may also be purchased for a nominal fee from insurance companies.
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