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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.
A surety, surety bond or guaranty, in finance, is a promise by one party to assume responsibility for the debt obligation of a borrower if that borrower defaults. promise to pay a sum of money in the event that another person fails to fulfill an obligation. surety (Noun). One who undertakes to pay money or perform other acts in the event that his principal fails therein.