The secretary of the states office for the given state appoints the notary public official. Most public officials require an individual has to obtain the surety bond or notary bond before getting appointment. This Surety bond ensures that if official fails to perform his duties or violates the public faith through his negligence; with the available funds he can reimburse the fund to the state for the loss. The basic responsibility of the notary public is to legalize the individual parties of the contract who claim for any loss. Loss may be suffered by the state in failure of the official while confirming the identity of the party.

For example; vivek wants to sell his automobile to peter and he went to the notary office to transfer the title to peter. The notary official asks both vivek and peter to submit their identity card to conform their identification. Peter submitted his identification card, but vivek failed to submit and he says that he forgot to bring his identity card. The notary accepts both peter and vivek to sign the document and to carry on the transfer of title. The notary also signs the application. Actually, the person who sells the automobile is not the true owner of the automobile.

Here, in this case the true owner dos not have the intention to sell the automobile. Due to the negligence of the notary, the public trust has been lost. But still the true owner has the title of ownership. In above stated example due to the negligence of the notary, peter can fail a suit against the state for the loss incurred to him, due to the wrong representative appointed by the state

This notary bond is a guaranteed bond which guarantee the obligee that the state will perform his obligation. In failure of this bond a penalty amount is paid .these notary bonds are undertaken by the surety company. These bonds act as per the terms and condition of the notary publics commission.

The most familiar insurance policy is auto insurance policy. In case an accident occurred for you, the insurance company will pay off the claim and losses. Like an auto insurance policy, a notary bond is also the one and the same. The funds available will be paid, for the loss incurred. The insurance company compensates the loss up to the penalty amount of the bond. On the other hand the loss paid by the surety is not easily return off. It will be collected from the bonded party i.e. THE NOTARY.

Generally this notary bond protects the public against false representation. To provide protection, insurance coverage is given. The insurance protection is called as Notary Public Errors and Omissions. Notary bond is purchased for a nominal fee from the insurance company. Purchasing a notary bond helps the general public to become a notary public.