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.

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 ...

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 ...