How Notaries protect the public
A notary public is an appointed position by the Secretary of State’s office in a given state. As with most public officials, the State specifies that the individual obtain a notary bond before getting their commission. This bond “makes sure” that when the notary violates the public trust through negligence of their duties, finances are set aside to indemnify the State for its loss.
The main responsibility of notaries public is to validate that the individual parties to an agreement are who they claim to be. The State may suffer a loss if the notary public forgets to properly ensure the identity of the parties.
As a public official, the notary harms the public trust by failing in their duty to confirm identity. If a Florida 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. Notary Public bonds are often 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 a person has an Indiana home insurance 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 guarantee that the funds will be available when 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 company 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.
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