Surety Bonds

What is Surety Bonds

A Surety Bond is a three-party contract between the obligee (person requiring the bond), the principal (the insured), and the surety (insurance company) that guarantees the performance of the principal is done correctly. Surety bonds are not insurance due to the fact that in the event the surety has to pay out to the obligee, once paid, it will then turn around and seek reimbursement from the principal.