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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.
While there are many varieties, a surety bond is essentially an agreement between three partiesâa principal, an obligee and a surety âassuring them all that something will happen. In general, surety bonds protect consumers and hiring parties, also known as the obligees, from fraud, abuse and penalties.