A notary is an official appointed position by the Secretary of State’s office in a given state. Like most public officials, the State specifies that the individual get a surety bond before receiving their appointment. This bond makes sure that when the notary violates the public trust through neglect of their duties, funds are available to indemnify the State for its loss.

The main responsibility of notaries is to validate that the individual parties to an agreement are who they claim to be. The State may experience a loss if the notary neglects to properly validate the identity of the parties.

As a public official, the notary public harms the public trust by failing in their duty to confirm identity. If a Delaware 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 guarantee of payment to the obligee (the State) if losses occur for a penalty amount of the bond. Notary bonds are often provided by a surety company (typically an insurance carrier). The bond often runs concurrently with the term of a notary’s commission.

You may be familiar with a home insurance policy. If a person has a rental property in Indiana loss, the insurance carrier pays the claim 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 promise that the funds will be available when 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 company is not simply written off. The surety 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 companies.