Notaries serve a valuable role

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

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

As a public official, the notary causes harm to the public trust by failing in their responsibility to confirm identity. If a Mississippi 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 guarantee of payment 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 a notary’s commission.

You’re probably familiar with a homeowners insurance policy. If you have an Indiana home insurance claim, the insurance carrier pays the claim and writes off the loss. You aren’t required to reimburse the company for the claim. Unlike a homeowners insurance policy however, a notary bond is simply a promise that the funds 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 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 E & O and can also be obtained for a nominal fee from insurance companies.