A surety bond is a contractual agreement between a project owner or business guaranteeing that the work / project will be completed, or that specific business regulations will be followed to complete the project.
The bond itself helps guarantee that a specific task is going to be fulfilled from which you have three parties; the principal, the obligee and surety.
The principal is the business that purchases the bond. The obligee is the business or person that is asking for the bond and the surety is the insurance company that is backing the bond and the work of the principal.
Learn more to see if you need bonds to manage your business.