Surety Bonds

What is a Surety Bond?

A Surety Bond (not surity bond “which is a common misspelling”) is a guarantee or agreement that specific obligations will be fulfilled. If the Principal (Obligor/ the one making the guarantee) happens to default on his/or her agreement, the Surety company (Grantor) must perform the contract, duty, or obligation of the Principal, or Indemnify the Obligee (Beneficiary) for the actual loss.

A Surety bond is a general term for all bonds. There are many different types of surety bonds normally they are required to obtain a specific license. A Surety Bond is a three part agreement , The Principal, Municipality / Private Obligee, and Surety Company. The Principal is the business or individual applying for the surety bond. The Obligee is the one requiring the Surety Bond. The Surety Company is the one writing the surety bond. There are literally thousands of different needs for a surety bond and it can become confusing at times when applying for one, so feel free to contact us with any questions you have. We have broken down some of the basic surety categories below to help you determine what type of surety bond is right for you or your clients needs.