Surety Bonds
A Surety bond (guarantee) is defined as a three-party agreement that legally binds together you (who need the bond), beneficiary (who requires the bond) and insurance company (that sells the bond). The bond guarantees that beneficiary will receive a certain amount by insurance company if you fail to meet contractual obligations in the timely manner. Therefore, surety bond protects the beneficiary against losses resulting from your failure to meet obligations.