Why a Notary Bond?

A notary is an official appointed position by the Secretary of State’s department in a given state. Like many public officials, the State specifies that the individual obtain a notary bond before getting the appointment. This bond “makes sure” that when the official violates the public trust through negligence of their duties, finances are available to reimburse the State for its loss.

The principal duty of notaries 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 confirm the identity of the parties.

As a public official, the notary causes harm to the public trust by failing in their duty to confirm identity. If a notary public in Florida 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) when 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 the notary’s commission.

You’re probably familiar with a homeowners insurance policy. When you have a home 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 damages. Unlike a homeowners insurance policy however, a notary bond is simply a guarantee that the funds 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 claim 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 Public E & O and can also be obtained for a nominal fee from insurance companies.