What is the process for making a claim on a surety bond?

The process for making a claim on a surety bond typically involves the obligee notifying the surety and providing necessary documentation to substantiate the claim. The obligee is the party that is receiving the benefit of the bond's guarantee and has the right to seek compensation when the principal fails to meet their obligations.

When the obligee notifies the surety, they must include relevant documentation that proves a breach has occurred and outlines the damages or losses incurred as a result. This documentation might include contracts, invoices, or evidence of the principal's failure to comply with their obligations. By following this protocol, the surety can assess the validity of the claim and determine any appropriate action.

The other options do not accurately describe the claim process. The principal notifying the surety is not sufficient by itself since the obligation primarily lies with the obligee to assert the claim. Similarly, the surety does not initiate claims, as it acts upon the information provided by the obligee. Finally, while the indemnitor is responsible for any obligations that the principal has, they are not typically involved in the claim process directly unless the surety seeks indemnification after the claim has been settled. This reinforces the importance of the obligee's role in notifying the surety