Surety Bond

Surety bond insurance in the USA is a financial guarantee, not traditional insurance. It ensures that a person or business will fulfill a legal or contractual obligation. If they don’t, the harmed party is compensated—and the bonded party must repay that amount.

Key Types of Coverage

• Principal : The person or business that needs the bond.
• Obligee : The entity requiring the bond (government agency, court, client)
• Surety : the bond company that guarantees the obligation.