Meaning of “surety bond” in the English Dictionary

business-english dictionary

"surety bond" in Business English

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surety bondnoun [ C ]

uk us

LAW a legal agreement in which someone promises to pay a person or organization a sum of money if another person does not do something they had promised to do:

Contractors are not required to post a surety bond, but they must have at least $3 million in liability insurance.

(Definition of “surety bond” from the Cambridge Business English Dictionary © Cambridge University Press)