A Surety Bond is a three-party agreement whereby the surety guarantees to the obligee (the entity the guarantee is made to) that the principal (the contractor or manufacturer) is capable of performing the contract and/or bond obligation in accordance with the contract documents and/or obligation.
Here are the eight different families of surety bonds:
- License and Permit Bonds
- Contract Bonds (Bid and Pay/Performance Bonds)
- Notary Bonds
- Highway Permit Bonds
- Union Wage/Welfare Bonds
- ERISA Bonds
- Radiological Material Licensee Decommissioning Financial Assurance Bonds (USNRC and Agreement States)
- Closure/Post-Closure Bonds and other related Bonds (EPA and State EPA Agencies)
