How a notary bond protects the public
June 11, 2010
The primary responsibility of notaries public is to validate that the individual parties to an agreement are who they claim to be. The State may experience a loss if the notary public fails to properly confirm the identity of the parties.
As a public official, the notary public harms the public trust by failing in their duty to confirm identity. If a Connecticut 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 guarantee of payment to the obligee (the State) when losses occur for a penalty amount of the bond. Surety bonds are generally provided by a surety company (typically an insurance carrier). The bond usually runs concurrently with the period of the notary’s commission.
You may be familiar with a property insurance policy. If you have a rental property in Indiana loss, the insurance company pays the claim and writes off the loss. You aren’t required to reimburse the carrier for the loss. Unlike a homeowners insurance policy however, a notary bond is simply a guarantee that the finances will be available should 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 surety 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 Errors and Omissions and may also be purchased for a nominal fee from insurance carriers.
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