What if a claim is made on a bond?
If a principal fails to uphold his/her end of a surety bond, then the obligee or other harmed party can make a claim on the bond. In this situation, the surety will legally be held accountable for resolving the situation. Before executing a bond, surety providers require principals to sign indemnities as a legal promise they will reimburse a surety for any losses due to a claim.