# What Is a Surety Bond?\n\nA surety bond is a **three-party** instrument:\n- **Principal** — the contractor\n- **Obligee** — the owner/project owner\n- **Surety** — the bonding company\n\nUnlike insurance, the **contractor repays the surety** for any loss. Good books (job costing + WIP) directly raise your **bonding capacity**.
**Takeaway:** A surety bond is three-party, and you repay the surety — good books raise your bonding capacity.
