What does a notary do?

A notary is an appointed position by the Secretary of State’s department in a given state. As with many public officials, the State specifies that the person obtain a surety or notary bond before getting the appointment. This bond “makes sure” that when the official violates the public trust through negligence of their responsibilities, funds are set aside to indemnify the State for its loss.

The principal duty of a notary is to validate that the individual parties to an agreement are who they claim to be. The State may suffer a loss if the notary neglects to properly validate the identity of the parties.

As a public official, the notary public violates the public trust by failing in their duty to confirm identity. If a Washington 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 surety bond is a promise to pay to the obligee (the State) when losses occur for a penalty amount of the bond. Notary bonds are generally 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 home insurance policy. If a person has a homeowners insurance in Indiana claim, the insurance carrier pays the claim and writes off the loss. You aren’t required to reimburse the carrier for the loss. Unlike a property insurance policy however, a notary bond is simply a guarantee that the funds will be available if losses occur. The surety (insurance company) pays the State up to the penalty amount of the bond. However, this loss paid by the surety is not simply written off. The company 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 companies.

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