A notary public is an official appointed position by the Secretary of State’s department in a given state. Like many public officials, the State requires that the person get a surety or notary bond before getting their appointment. This bond “makes sure” that when the official violates the public trust through neglect of their responsibilities, finances are available to indemnify the State for its loss.

The main responsibility of notaries public is to ensure 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 validate the identity of the parties.

As a public official, the notary public harms the public trust by failing in their duty to confirm identity. If a New Hampshire 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 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 usually runs concurrently with the term of a notary’s commission.

You’re probably familiar with a homeowners insurance policy. If you have a homeowners insurance in Indiana claim, the insurance company pays the claim and writes off the loss. You aren’t required to reimburse the carrier for the loss. Unlike a homeowners insurance policy however, a notary bond is simply a guarantee 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 surety is not simply written off. The surety 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 Public Errors and Omissions and may also be purchased for a nominal fee from insurance carriers.