Surety Bonds

What are Principals and Obligees in Surety?


Whether you’re starting a business, launching a construction project, or entangled in court, you will need a surety bond to guarantee payment from the surety to the obligee if the principal is unable to meet the expectations of the agreement.

You hear these names, surety, obligee, principal–but who exactly are these parties? In this blog, we’ll uncover who obligees and principals are, along with their role in a contractual obligation.


Obligees are the parties requiring the principal to obtain a surety bond in order to secure a license or permit, take on a construction project, or get a remedy or appointment in the court. These can be government agencies, courts, or other individuals or companies. Surety bonds act as protection should the principal somehow violate the contract and cause damage to the obligee. For example, should a contractor not pay for subcontractors or materials, a payment bond would provide a guarantee to the obligee that the subcontractors and suppliers will be paid.


In surety, a principal is the party required by the obligee to obtain the surety bond in question in order to either obtain a license or permit, take on a construction project, or obtain a surety bond required by the court. The bond protects the obligee in case the principal performs any actions not in accordance with the applicable states laws or regulations, fails to perform satisfactorily, breaches the contract binding the two parties, or somehow otherwise performs some unethical or illegal action causing damage to the obligee. For example, if an estate executor fails to protect the interests of the estate and its beneficiaries, the surety bond protects the estate and beneficiaries.

Purchase Surety Bonds Online

There’s an easier way to purchase surety bonds, including bid, payment and performance, court and fiduciary bonds, and license and permit bonds. Simply fill in the information requested on our online form and print out your bond. It’s that easy! Contact us to learn more about purchasing these surety bonds.