Why bond a notary public?

A notary public is an official appointed position by the Secretary of State’s department in a given state. As with most public officials, the State requires that the person get a notary bond prior to receiving their commission. This bond “makes sure” that if the official violates the public trust through neglect of their duties, finances are available to reimburse the State for its loss.

The main duty of notaries public is to confirm that the individual parties to a contract are who they claim to be. The State may suffer a loss if the notary public neglects to properly validate the identity of the parties.

As a public official, the notary public harms the public trust by failing in their responsibility to confirm identity. If a Georgia notary doesn’t confirm identity and a loss occurs, an injured party can file a claim against that State for the loss, because the State was negligent through its appointed representative.

A surety 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 period of a notary’s commission.

You may be familiar with a property insurance policy. When 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 property 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 claim paid by the surety 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 Public Errors and Omissions and can also be purchased for a nominal fee from insurance companies.