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What is a Surety Bond Company? A Surety Bond Company (also called a surety, surety company or bonding company) is the party of the surety bond that takes on the risk and is responsible for paying the surety bond obligee in the case of a default by the surety bond principal.
Duhaime's Law Dictionary. Surety Definition: Related Terms: Surety Bond, Performance Bond, Indemnity, Guarantor, Guarantee or Guaranty, Bond. The person who has pledged him or herself to pay back money or perform a certain action if the principal to a contract fails, as collateral, and as part of the original contract.