Surety Bonding

The World of Surety Bonding

What is a Surety Bond?
 

Surety Bonds are three-party agreements, unlike an insurance policy where there are only two parties (insured and insurer). The issuer of the bond is the surety (first party) who insures or guarantees the contractor (second party) will perform according to the contract terms to the obligee (third party). The obligee is the company, person, or government agency that receives the bond and is protected against any loss by the surety company.