In the context of a surety bond, which entity provides the bond on behalf of the contractor or business owner to guarantee future work performance to the obligee?

Explanation

A surety bond is issued by an insurance company on behalf of a contractor or business owner. It serves as a guarantee to the entity awarding the project (the obligee) that the contractor will fulfill their obligations. If the contractor fails to complete the work as promised, the insurance company compensates the obligee. 56 www.bankersadda.com | Adda247 App