Notaries are public officials

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 person obtain a notary bond prior to receiving the commission. This bond “makes sure” that if the official violates the public good through negligence of their responsibilities, finances are set aside to reimburse the State for its loss.

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

As a public official, the notary public harms the public good by failing in their responsibility to verify identity. If a notary public in Utah doesn’t verify 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 limit of the bond. Notary bonds are usually issued by a surety company (typically an insurance company). The bond often runs concurrently with the term of a notary’s commission.

You’re probably familiar with a vehicle insurance policy. If you have an Indiana truck insurance claim, the insurance carrier pays the loss and writes off the loss. You aren’t forced to pay back the carrier for the claim. Unlike an auto insurance policy however, a notary bond is simply a promise that the funds will be available when losses occur. The surety (insurance carrier) pays the State up to the limit 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 E & O and can also be purchased for a nominal fee from insurance carriers.

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