What is a surety bond?
A surety bond is a legally enforced contract that binds three entities together.
-The principal is the person, professional or business that purchases the bond.
-The obligee is the person or government agency that requires the bond.
-The surety is the agency that issues the bond.
Each surety bond that's executed provides a financial guarantee that the principal will fulfill the terms outlined in the bond's legal language.
This is just the basic information on surety bonds. If you would like to learn more about surety bonds and how to obtain one, visit our education center for a complete overview, or give us a call at 1-800-308-4358 to speak with one of our surety specialists.
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