Why bond a notary public?
A notary is an appointed position by the Secretary of State’s office in any state. Like many public officials, the State requires 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 good through negligence of their duties, finances are set aside to indemnify the State for its loss.
The primary responsibility of notaries is to validate that the individual parties to a contract are who they say they are. The State can experience a loss if the notary public forgets to properly confirm the identity of both parties.
As a public official, the notary causes harm to the public good by failing in their responsibility to validate identity. If a Washington notary public doesn’t confirm identity and a loss occurs, an injured party can file a claim with that State for its loss, since the State was negligent through its appointed notary.
A surety bond is a guarantee of payment to the obligee (the State) if losses occur for the penalty amount of the bond. Notary bonds are usually provided by a surety company (typically an insurance carrier). The bond often runs concurrently with the term of a notary’s commission.
You may be familiar with an auto insurance policy. When you have an Indiana car insurance loss, the insurance carrier pays the claim and writes off the loss. You aren’t forced to pay back the company for the damages. Unlike a truck insurance policy however, a notary bond is simply a promise that the finances will be available if losses occur. The surety (insurance carrier) pays the State up to the limit of the bond. However, this loss paid by the company 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 Errors and Omissions and can also be obtained for a nominal fee from insurance companies.
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