A notary public is an appointed position by the Secretary of State’s department in a given state. Just like most public officials, the State requires that the person get a notary bond before receiving the commission. This bond “makes sure” that if the official violates the public trust through negligence of their responsibilities, finances are set aside to reimburse the State for its loss.

The primary responsibility of notaries is to ensure that the individual parties to a contract are who they claim to be. The State may experience a loss if the notary public fails to properly ensure the identity of the parties.

As a public official, the notary causes harm to the public trust by failing in their responsibility to confirm identity. If a Colorado 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 notary bond is a promise to pay to the obligee (the State) if losses occur for a penalty amount of the bond. Surety bonds are often provided by a surety company (typically an insurance carrier). The bond often runs concurrently with the term of the notary’s commission.

You may be familiar with a property insurance policy. When a person has a home 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 promise that the funds will be available should losses occur. The surety (insurance company) pays the State up to the penalty amount of the bond. However, this claim paid by the carrier 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 Public E & O and can also be purchased for a nominal fee from insurance companies.

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