What does a notary public do?
A notary public is an appointed position by the Secretary of State’s office in a given state. As with many public officials, the State requires that the individual get a surety or notary bond prior to getting the appointment. This bond “makes sure” that if the notary violates the public trust through neglect of their duties, funds are available to indemnify the State for its loss.
The principal duty of notaries public is to confirm 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 harms the public trust by failing in their responsibility to confirm identity. If a Wisconsin 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) when losses occur for a penalty amount of the bond. Notary bonds are usually provided by a surety company (typically an insurance carrier). The bond often runs concurrently with the period of a notary’s commission.
You may be familiar with a property insurance policy. When a person has an Indiana home insurance loss, the insurance carrier pays the claim 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 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 claim paid by the company 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 Errors and Omissions and can also be obtained for a nominal fee from insurance carriers.
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