Surety

With over 60 years experience in contract and commercial surety, Economical is an experienced provider you can trust.

Understanding Surety

Surety involves three parties:

• The obligee (the party to whom the bond is payable)
• The principal (the party on whose behalf the bond is issued)
• The surety (the insurance company)

A surety bond protects the obligee against losses, up to the limit of the bond, that result from the principal's failure to perform its obligation or undertaking.

Unlike insurance, a loss paid under a surety bond is fully recoverable from the principal.

Economical Insurance offers two major classes of surety bonds: contract and commercial.