A notary is an appointed position by the Secretary of State’s office in a given state. Like most public officials, the State requires that the person obtain a surety or notary bond prior to receiving their commission. This bond “makes sure” that if the notary violates the public trust through neglect of their duties, funds are available to reimburse the State for its loss.
The primary duty of notaries 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 public forgets to properly validate the identity of the parties.
As a public official, the notary violates the public trust by failing in their responsibility to confirm identity. If a notary in West Virginia 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. Notary bonds are generally provided by a surety company (typically an insurance carrier). The bond usually runs concurrently with the term of the notary’s commission.
You’re probably familiar with a home insurance policy. If a person has a homeowners insurance in Indiana claim, the insurance carrier pays the loss and writes off the loss. You aren’t required to reimburse the carrier for the damages. 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) makes a payment to the State up to the penalty amount of the bond. However, this loss paid by the carrier 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 Errors and Omissions and may also be purchased for a nominal fee from insurance companies.