Notaries serve a valuable role
A notary public is an official appointed position by the Secretary of State’s department in a given state. Just like many public officials, the State requires that the person get a surety or notary bond prior to getting the appointment. This bond “makes sure” that when the official violates the public trust through neglect of their responsibilities, finances are set aside 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 experience a loss if the notary forgets to properly ensure the identity of the parties.
As a public official, the notary public violates the public trust by failing in their responsibility to confirm identity. If a notary in Louisiana 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) if losses occur for a penalty amount of the bond. Notary Public bonds are usually provided by a surety company (typically an insurance carrier). The bond generally runs concurrently with the period of the notary’s commission.
You may be familiar with a car insurance policy. When you have an auto insurance Indiana claim, the insurance company pays the claim and writes off the loss. You aren’t required to reimburse the company for the damages. Unlike an auto insurance policy however, a notary bond is simply a promise that the funds will be available if 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 E & O and can also be obtained for a nominal fee from insurance carriers.