A _____ is an agreement with an insurance or bonding company that will pay a specified amount in the event that the entity bonded fails to comply with specified contractual requirements.

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Surety bonds are a type of contract between three parties: the principal (entity being bonded), the surety (insurance or bonding company), and the obligee (the party requiring the bond). The bond ensures that the principal will fulfill their contractual obligations, and if they fail to do so, the surety will pay a specified amount to the obligee to cover the losses incurred. Business interruption insurance and credit insurance are not related to bonding, while fidelity bonds focus specifically on protecting against employee theft.

A _____ Is an Agreement with an Insurance or Bonding