A notary is an official appointed position by the Secretary of State’s department in a given state. As with many public officials, the State requires that the individual get a surety bond before receiving the appointment. This bond “makes sure” that if the official violates the public trust through neglect of their responsibilities, funds are set aside to reimburse the State for its loss.

The primary responsibility of notary publics 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 neglects to properly validate the identity of the parties.

As a public official, the notary violates the public trust by failing in their duty to confirm identity. If a Minnesota notary public 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 surety bond is a guarantee of payment 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 may be familiar with a homeowners insurance policy. If you have a rental property in Indiana claim, the insurance carrier pays the loss and writes off the loss. You aren’t required to reimburse the company for the damages. Unlike a homeowners insurance policy however, a notary bond is simply a promise that the funds will be available should 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 surety is not simply written off. The carrier 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 may also be purchased for a nominal fee from insurance carriers.

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