Jump to navigation

Aug 19, 2013

A surety bond, at its most simple description, is a financial instrument that binds an individual to performing a particular obligation. Not doing the job as agreed upon allows for the breaking of the bond, and the money to be paid out to a specified recipient. Surety bonds are typically issued by an insurance company to those seeking a third party to insure that the work will be performed to specification. There are three parties to a surety bond:
  • Obligee - the individual or party who is to receive the fruits of the contractual obligation.
  • Principal - the individual or party who is performing the contractual obligation.
  • Surety - the entity that guarantees the obligee that the principal is capable of performing the task at hand.
Surety bonds are used in a variety of ways such as a judicial bond, license and permit bonds, fidelity bonds and more. As an example: someone has been arrested and given bail. The individual can post bond as a surety of their appearance in court on the specified date. If that individual fails to show in court, the bond is broken and the money within the bond is used to pay the court. If you are in the Vacaville area and interested in a surety bond, contact Gateway Professional Insurance Services for more information today.

Article Comments

There are no comments yet.

Be the First to Leave a Comment

(Do not fill out this field, or your comment will be ignored. This field is here to help us protect against automated (spam) comments.

Your comment will show up once it has been reviewed.

Refer a Friend And we'll send you 2 movie tickets!

Tell your friends about us.
We'll send you 2 movie tickets. More »

Bookmark our mobile site visit m.gatewayinsurance.com

Information you need, when and where you need it most. More »

Gateway Insurance

Jump to navigation

Our location

Vacaville office

1990 Alamo Dr Ste 1
Vacaville, California 95687

Additional navigation:

Home page | Contact | About | Companies | Service | Privacy | Disclaimer | Search

© 2019 Gateway Insurance
California License # 0695062