Jump to Main Content
USA flagAn Official Website of the United States Government

Surety Bonds

A surety bond is an instrument that is signed by the Principal (or Contractor) and the Surety Company in order to protect the interests of the Obligee (the buyer, or party issuing the contract) in the event the Principal defaults on the contract. A surety bond is acquired by the Principal from the Surety Company for a fee, as a sort of insurance policy to protect the Obligee. If the Principal defaults, the Surety Company steps in to ensure the contract is completed.

Want more information about surety bonds? Click here.

What is a surety bond?