What is Notary E & O?

A notary public is an appointed position by the Secretary of State’s office in a given state. Like many public officials, the State requires that the individual get a surety bond before getting the commission. 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 primary responsibility of notaries public is to confirm that the individual parties to an agreement are who they claim to be. The State may suffer a loss if the notary neglects to properly ensure 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 Florida notary public doesn’t confirm identity and a loss occurs, an injured party can file a claim against that State for their loss, because the State was negligent through its appointed representative.

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

You may be familiar with a home insurance policy. If a person has an Indiana home insurance loss, the insurance carrier pays the claim and writes off the loss. You aren’t required to reimburse the company for the claim. Unlike a home 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 surety 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 can also be purchased for a nominal fee from insurance carriers.