Surety Bond

What is a Claim for a Surety Bond? A surety bond claim is an assertion that in essence states that the Principal (bond holder) has not fulfilled his obligations or has infringed on legal requirements. The obligee, that is the person requiring the bond, or any aggrieved party can file a claim if he believes that the so-called principal did not fulfill the duties that rightfully existed. Claims may arise due to failure on the part of the obligor to honor the contract, or they may stem from simple misunderstandings. Other bonds, such as Lost Title Bonds, allow individuals to challenge title ownership to a vehicle, thereby potentially invalidating a bonded title. How Does a Surety Bond Claim Work? When a claim gets filed, the surety expects the principal to handle the claim. Under the indemnity agreement signed at the onset of the bond procurement process, the principal is responsibleContinue Reading