A Brief Guide about Surety Bonds

Category: Business

A surety bond is the best way to ensure a contract will be completed per the agreed upon terms. There are three main parties involved in a bonded contract, the obligee (client), the principal (an individual or business) and the surety (insurance company). An obligee is the person who required the bond, principal is the individual or company that needs to purchase the bond and the surety is the insurance company that backs the bond.