What does a notary public do?
Saturday, February 20th, 2010 | Places
A notary public is an appointed position by the Secretary of State’s department in a given state. Like many public officials, the State requires that the person get a surety or notary bond before receiving their appointment. This bond “makes sure” that if the notary violates the public trust through negligence of their duties, finances are available to reimburse the State for its loss.
The primary responsibility of notary publics is to ensure that the individual parties to an agreement are who they claim to be. The State may experience a loss if the notary fails to properly confirm the identity of the parties.
As a public official, the notary public causes harm to the public trust by failing in their duty to confirm identity. If a Virginia 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 notary bond is a guarantee of payment to the obligee (the State) should losses occur for a penalty amount of the bond. Notary Public bonds are usually provided by a surety company (typically an insurance carrier). The bond generally runs concurrently with the term of a notary’s commission.
You’re probably familiar with a home 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 claim. Unlike a homeowners insurance policy however, a notary bond is simply a promise that the funds 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 carrier 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 E & O and may also be obtained for a nominal fee from insurance companies.