Surety bonds function as a financial guarantee for a state, a licensing entity, the court, and many other regulatory bodies. A surety bond may guarantee your performance of duties related to licensing, contracting, or performance of an obligation, even if that obligation is none other than to just follow the law. In other cases, such as court surety bonds, these financial instruments protect the opposing property from subsequently determined wrongful harm.

• There are almost always 3 sides to a surety bond: the Principal (you), the Surety, and the Obligee (the entity requiring which requires the surety bond);
• However, unlike insurance, if a claim is paid by a Surety against your surety bond, the Principal is obligated to make the Surety whole;
• And, when required, meeting the surety bond requirement can mean the difference between something taking effect or that something not taking effect at all.