What is a Notary Public?
Posted on Tuesday Oct 27, 2009 Under New IdeasA notary public is an appointed position by the Secretary of State’s office in a given state. Just like most public officials, the State specifies that the individual get a surety or notary bond before getting their appointment. This bond “makes sure” that when the notary violates the public trust through neglect of their duties, finances are set aside to reimburse the State for its loss.
The main duty of notaries is to validate that the individual parties to a contract are who they claim to be. The State may experience a loss if the notary neglects to properly validate the identity of the parties.
As a public official, the notary public causes harm to the public trust by failing in their responsibility to confirm identity. If a Georgia notary 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 surety bond is a promise to pay to the obligee (the State) if losses occur for a penalty amount of the bond. Notary Public bonds are generally provided by a surety company (typically an insurance carrier). The bond generally runs concurrently with the period of the notary’s commission.
You may be familiar with a homeowners insurance policy. If a person has a home insurance in Indiana loss, the insurance company pays the claim and writes off the loss. You aren’t required to reimburse the company for the claim. Unlike a property insurance policy however, a notary bond is simply a promise that the finances will be available should losses occur. The surety (insurance company) makes a payment to the State up to the penalty amount of the bond. However, this claim paid by the carrier 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 E & O and can also be obtained for a nominal fee from insurance companies.