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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.
Surety is a noun the definition of the word surety is: a guarantor who binds themselves to anotherâs obligations and pledges that their obligations will be met in case the principal is in default.ith Surety, it is reverse for one there is no deductible. In addition, if someone is acting as a Surety for you and a claim occurs, you must restore the surety to the financial position it once was at before the time of the loss or claim. Because you are indemnifying the surety company not the surety indemnifying you.