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What is a Surety Bond?
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A surety bond (pronounced "shur-i-tee bond") can be defined in its simplest form as a written agreement to guarantee compliance, payment, or performance of an act. Surety is a unique type of insurance because it involves a three-party agreement. The three parties in a surety agreement are:
Principal
The principal is an individual, business or other party that purchases the surety bond and agrees to undertake a compliance, payment or performance obligation as promised pursuant to the terms of the surety bond form or agreement.
Surety
The surety is the insurance company or surety company that guarantees the obligation will be performed. If the principal fails to perform the act as promised, the surety is contractually liable for losses sustained.
Obligee
The obligee (pronounced ob-li-jee) is the party who requires and often times receives the benefit of the surety bond. For most surety bonds, the obligee is a local, state or federal government organization.
Expert Surety Bond Insights
Find out how to get a dealer’s license in Texas and start selling automobiles in the Lone Star State, including how to get the surety bond you need.
Nevada passed Bill 39 creating a new surety bond requirement for residential contractors, but this bond can help your business. Find out the details here.
Yes you do have to purchase the probate bond. But it's not what it seems. Learn why you have to buy one, where the money comes from, and how to save money!
Nevada's contractor license requirements are easy enough to follow. But there are specifics you should know about. Here are the 9 steps to follow.
Getting your Texas auto dealer license issued requires you to purchase a surety bond. Learn what a bond is, why you need it, and how to get it for less.
Getting your Nevada contractor license bond is unique. Learn about the process, what a contractor bond is, and how to pay less for your Nevada bond.