What does a notary do?

A notary public is an appointed position by the Secretary of State’s department in a given state. Just like most public officials, the State specifies that the person get a surety or notary bond before receiving their appointment. This bond “makes sure” that when the official violates the public trust through neglect of their responsibilities, funds are set aside to reimburse the State for its loss.

The main duty of notaries is to confirm that the individual parties to a contract are who they claim to be. The State may experience a loss if the notary public neglects to properly validate the identity of the parties.

As a public official, the notary violates the public trust by failing in their duty to confirm identity. If a Mississippi 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 promise to pay 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 generally runs concurrently with the period of a notary’s commission.

You’re probably familiar with a homeowners insurance policy. If a person has a rental property in Indiana loss, the insurance carrier pays the claim and writes off the loss. You aren’t required to reimburse the carrier for the loss. Unlike a home insurance policy however, a notary bond is simply a guarantee that the finances will be available when losses occur. The surety (insurance company) makes a payment to the State up to the penalty amount of the bond. However, this loss paid by the carrier is not simply written off. The surety 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 Errors and Omissions and can also be purchased for a nominal fee from insurance carriers.