what is required for surety bond
While there are many different varieties, a surety bond is simply an agreement between three parties: 1  Principal: the person who needs the bond. 2  Obligee: the person who is protected by the bond, such as the government entity. 3  Surety: the person who issues the bond.
The simplest way to define surety bond is insurance for them, paid and backed by you. Surety bonds are an insurance policy for the party requiring the bonds, called the obligee. In most instances, the obligee is a government agency and the bond is in place to protect the government and its citizens.