A notary public is an appointed position by the Secretary of State’s office in a given state. Like many public officials, the State requires that the individual obtain a surety or notary bond before getting the commission. This bond “makes sure” that if the notary violates the public trust through neglect of their duties, funds are available to indemnify the State for its loss.
The primary responsibility of notaries is to validate that the individual parties to a contract are who they claim to be. The State may suffer a loss if the notary public forgets to properly validate the identity of the parties.
As a public official, the notary harms the public trust by failing in their duty to confirm identity. If a Georgia notary 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) if losses occur for a penalty amount of the bond. Notary Public bonds are often provided by a surety company (typically an insurance carrier). The bond generally runs concurrently with the period of a notary’s commission.
You’re probably familiar with a home insurance policy. If you have a rental property in Indiana loss, the insurance company pays the loss and writes off the loss. You aren’t required to reimburse the carrier for the claim. Unlike a homeowners insurance policy however, a notary bond is simply a guarantee that the finances 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 surety is not simply written off. The company will most likely seek reimbursement from the bonded person, 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 carriers.