A notary is an official appointed position by the Secretary of State’s office in a given state. Like most public officials, the State requires that the person obtain a surety bond before getting the commission. This bond “makes sure” that if the notary violates the public trust through neglect of their responsibilities, funds are available to reimburse the State for its loss.

The principal responsibility of notary publics is to confirm that the individual parties to an agreement are who they claim to be. The State may experience a loss if the notary neglects to properly ensure the identity of the parties.

As a public official, the notary violates the public trust by failing in their responsibility to confirm identity. If a North Dakota 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 surety bond is a promise to pay to the obligee (the State) should losses occur for a penalty amount of the bond. Notary bonds are often provided by a surety company (typically an insurance carrier). The bond usually runs concurrently with the period of a notary’s commission.

You may be familiar with a property insurance policy. When a person has a property insurance in Indiana 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 home insurance policy however, a notary bond is simply a promise that the finances will be available should 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 company 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 can also be purchased for a nominal fee from insurance companies.