Surety bonds
Surety
The company that issues a surety bond and backs the principal's obligation. It pays valid claims to the obligee, then collects repayment from the principal.
The surety is the company that issues a bond and stands behind your obligation, paying valid claims if you fail to meet the bonded requirement. It is the third party in the bond relationship.
A surety underwrites you much as a lender would, weighing credit, finances, and experience. A strong profile widens your bonding capacity and lowers premium, which matters when several licenses each carry their own bond.
Related terms
Where this comes up
Surety is one piece of getting and keeping a business licensed. We handle the filings, bonds, and renewals that surround it across every state where you operate.