An agreement whereby the Surety, for a fee known as premium, guarantees the performance of the Principal or Obligor of an obligation or undertaking in favor of third party called Obligee.

 Parties to a Bond

• Surety – issues the bond and is the guarantor.
• Principal or Obligor – fulfills the obligation and on whose behalf the bond is issues by the Surety.
• Obligee – beneficiary of the bond or in whose favor the bond is issued and protected against losses due to non-performance of the Principal.

 Surety Agreement

• Principal Contract – contract between Principal and the Obligee where the former binds himself to faithfully performs his obligation in accordance with the terms and conditions agreed upon.
• Contract of Suretyship – contract wherein the Surety guarantees the faithful performance and compliance of the Principal of his contract with the Obligee.
• Indemnity Agreement – contract or agreement where the Principal and his Co-indemnitors bind themselves to reimburse the Surety for losses incurred. This agreement also provides that the Principal agrees to pay the bond premium.

Liberty Insurance Corporation provides the following bonds:

 Contractor’s Bond:

• Bidders Bond
• Performance Bond
• Surety Bond for Advance Payment
• Warranty Bond

 Fidelity Bond

 Guarantee Payment Bond

 Fiduciary Bond:

• Administrator’s Bond
• Executor’s Bond
• Guardian’s Bond
• Receivership’s Bond

 Civil Judicial Bond:

• Heir’s Bond
• Replevin Bond
• Counter-Replevin Bond

Supersedeas Bond