Surety bond

{
  "id": "MLC-T-INS-003248",
  "term": "Surety bond",
  "field": "Insurance and risk management",
  "definition": "A three-party agreement where one party, the surety, guarantees to a second party, the obligee, that a third party, the principal, will fulfill an obligation. If the principal fails to perform as required, the surety is responsible for compensating the obligee for damages or completing the obligation. These bonds are often required by law or contract for construction projects, licensing, or court proceedings.",
  "url": "https://mlchart.com/terminology/insurance/surety-bond/"
}