Surety Bonds
Surety Bonds are often used in public and private contracts to help ensure that work is completed. They can also be required as part of the licensing process to conduct certain businesses such as Mortgage Brokering, Escrow, and Property Management.
What is a Surety Bond?
A Surety Bond is a written agreement between three parties that guarantees a principal will fulfill their obligations to an obligee:
Principal: The entity that provides the bond and is obligated to perform or pay a debt
Surety: The insurance company that guarantees the bond and is liable for the principal's performance
Obligee: The party that benefits from the bond and is protected by it