What is Notary E & O?

A notary public is an official appointed position by the Secretary of State’s department in a given state. Like many public officials, the State requires that the person get a surety or notary bond before receiving the appointment. This bond “makes sure” that if the official violates the public trust through negligence of their duties, finances are set aside to reimburse the State for its loss.

The main duty of notary publics 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 public fails to properly confirm the identity of the parties.

As a public official, the notary public violates the public trust by failing in their duty to confirm identity. If a Kansas 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 guarantee of payment to the obligee (the State) when 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 often runs concurrently with the term of the notary’s commission.

You may be familiar with a homeowners insurance policy. When a person has a property insurance in Indiana claim, the insurance company pays the claim and writes off the loss. You aren’t required to reimburse the company for the damages. Unlike a home 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 company 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 E & O and may also be obtained for a nominal fee from insurance companies.

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