A surety bond is a three-party contract between a principal, obligee and a surety. Surety bonds also are regulated by state insurance departments. The principal has an obligation to the obligee to ...

Surety bonds are an agreement involving a principal, an obligee and a surety company that issues the bond for a fee. In most cases, the obligee accepts a bid or application submitted by the principal.

Julia Kagan is a financial/consumer journalist and former senior editor, personal finance, of Investopedia. Michael Boyle is an experienced financial professional with more than 10 years working with ...

Contractor default inflicts huge losses on everyone involved — on contractors and project owners alike, though in different ways — and can delay, and ultimately stop, a project. This is why surety ...