surety bond
Third-party promise
A surety bond is a contract guaranteeing one party will fulfill obligations to another, with a third party (the surety) backing the promise financially.
If the bonded party fails to perform, the surety pays.
Common in construction, court proceedings, and licensing: Contractors must post a surety bond before starting work.
Unlike insurance, the bonded party must repay the surety for any claims paid out.
Chief school administrator
- obligeeParty owed performance
- indemnityProtection against financial loss
- collateralSecurity for debt
- performanceCarrying out a task
default · completion · contractor · fiduciary · obligation · bail · warranty · affidavit
Added cost for better
- underwriterOne who assumes financial risk
- underwritingRisk evaluation and acceptance
- coverageExtent of inclusion
- claimStatement of ownership or truth
liability · risk · reinsurance · actuary · solvency · aggregate · exclusion · endorsement
principal
Chief school administrator
- obligeeParty owed performance
- indemnityProtection against financial loss
- collateralSecurity for debt
performance · default · completion · contractor · fiduciary · obligation · bail · warranty · affidavit · replevin
premium
Added cost for better
- underwriterOne who assumes financial risk
- underwritingRisk evaluation and acceptance
- coverageExtent of inclusion
claim · liability · risk · reinsurance · actuary · solvency · aggregate · exclusion · endorsement · deductible
surety bondunsecured debt
Borrowing without collateral
unsecured loan · signature loan · unsecured credit · promissory note · open account
bond, assured, ensure, insure, reassure, assurance, assure, ensured, insured