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Hey there! If you are wondering WHAT a Surety Bond is, WHO are involved in it, and HOW they work, then youre at the right place! So what is a Surety Bond? Surety Bond, in its simplest sense, is a promise by a surety that a specific task is completed to the terms of a contract or in line with laws and regulations. Who requires a Surety Bond? Most often, surety bonds are required by a government agency, regulation department, state or federal court, or general contractor as a form of protection. It also serves as a form of protection for consumers. Who are the parties involved in obtaining a surety bond? What makes surety bonds unique is that they always have 3 Parties, specifically: The Obligee; The Principal; The Surety. 1st Party: The Obligee. The Obligee is the person or company requiring the bond. It is also the entity that is protected by the bond. 2nd Party: The Principal. The Principal is the person or company purchasing the bond and promising to adhere to the terms of the bond.
