A notary is an official appointed position by the Secretary of State’s office in any state. As with most public officials, the State specifies that the person obtain a surety or notary bond prior to receiving their appointment. This bond “makes sure” that if the official violates the public trust through negligence of their duties, finances are available to reimburse the State for its loss.

The primary responsibility of notaries public is to validate that the individual parties to an agreement are who they claim to be. The State can suffer a loss if the notary forgets to properly confirm the identity of the parties.

As a public official, the notary causes harm to the public good by failing in their duty to validate identity. If a notary in Louisiana doesn’t validate identity and a loss occurs, an injured party might file a claim against the State for their loss, because the State was negligent through its appointed notary.

A notary bond is a promise to pay to the obligee (the State) when losses occur for the penalty amount of the bond. Notary Public bonds are usually issued by a surety company (typically an insurance company). The bond usually runs concurrently with the period of the notary’s commission.

You may be familiar with a truck insurance policy. When you have an Indiana auto insurance loss, the insurance carrier pays the claim and writes off the loss. You aren’t required to reimburse the company for the loss. Unlike a car insurance policy however, a notary bond is simply a guarantee that the funds will be available if losses occur. The surety (insurance carrier) pays the State up to the penalty amount of the bond. However, this claim paid by the surety is not simply written off. The carrier 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 E & O and can also be obtained for a nominal fee from insurance companies.