Surety bonds are typically a three-sided contract:
Summing Up Surety Bonds In One Sentence:
Although you, as Principal, are required to obtain the surety bond, your bond is for the benefit and the financial protection of the Obligee --- not you; and the guarantor of that financial obligation is the Surety.
Claims and A Way To Think of Your Bond
Unlike insurance, claims that are paid on a surety bond are to be recompensed to the Surety by the Principal.
Recall that the bond is not for your “protection” as Principal; it is for the benefit of the Obligee. If it helps, you may think of your surety bond as a “type” of insurance that you buy for the benefit of the obligee.
AmeriPro Surety Bonds
AmeriPro Surety Bonds is a provider of commercial, court ordered/required, and non-construction contract surety bonds in all 50 states.