A notary public is an official appointed position by the Secretary of State’s office in a given state. Just like many public officials, the State requires that the individual obtain a surety or notary bond prior to getting their appointment. This bond “makes sure” that when the official violates the public trust through neglect of their responsibilities, finances are set aside to indemnify the State for its loss.

The primary duty of notaries public is to ensure that the individual parties to an agreement are who they claim to be. The State may suffer a loss if the notary forgets to properly confirm the identity of the parties.

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

You may be familiar with a homeowners insurance policy. When you have a home insurance 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 home 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 carrier 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 may also be obtained for a nominal fee from insurance carriers.