Obligee

What Does Obligee Mean?

An obligee is a person or entity for whom someone else is required to fulfill an obligation, as specified in a contract.

The obligee is also referred to as the promisee.

Insuranceopedia Explains Obligee

For every obligee, there is a corresponding obligor, the individual or entity that is obligated to fulfill a promise or duty as outlined in the contract.

The obligee can be a bank, a credit company, or a person who secures a surety bond to ensure that another party will complete an agreed-upon task. This setup is common in construction work, where a property owner or government agency is the obligee and requires the contractor to carry general liability insurance before signing. Independent contractors run into this arrangement on most jobs, since clients often request proof of insurance or bonding before work begins. Insurance policyholders are also considered obligees, as their insurance contracts stipulate that they are required to pay premiums to the insurance company.