Why a Notary Bond?

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

The principal duty of notaries public is to ensure that the individual parties to an agreement are who they claim to be. The State may experience a loss if the notary fails to properly confirm the identity of the parties.

As a public official, the notary violates the public trust by failing in their responsibility to confirm identity. If a Wisconsin notary public doesn’t confirm identity and a loss occurs, an injured party can file a claim against that State for the loss, because the State was negligent through its appointed representative.

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

You may be familiar with a property insurance policy. If a person has an Indiana home insurance claim, the insurance company pays the loss 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 promise 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 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 may also be obtained for a nominal fee from insurance companies.