Surety
Updated: 09 June 2023
What Does Surety Mean?
A surety is the person or organization that undertakes the responsibility of repaying a debt in case the debtor defaults or is unable to repay the debt. It is also known as a guarantor.
Insuranceopedia Explains Surety
The need for surety arises in contracts wherein one party has doubts about the ability of the other party to fulfill their obligations and other specified requirements. In this scenario, the first party typically seeks some kind of assurance, sometimes in the form of a surety to reduce risk. The guarantor enters a contract of suretyship, which could result in additional benefits, such as lower interest rates for the borrower.
Synonyms
Guarantor
Related Definitions
Related Articles
Insurance Self-Service Portal: The Future of Customer Experience
Blockchain’s Impact on Transforming the Insurance Landscape
What Every College Student Should Know About Renters Insurance
Guidance for Nurses: Five Essential HIPAA Compliance Tips
Insuring Your Financial Future: the Crucial Role of Accounting in Insurance
The Future of Insurtech: How Technology is Transforming the Insurance Industry
Related Reading
Revealing the Most And Least Popular U.S. Insurance Companies
What Students Need to Know About Insurance Coverage During Internships
A Roadmap for Students Interested in the Insurance Industry
Strong Identity Verification in the Insurance Sector
How to Avoid Online Insurance Scams
How to Get Into the Insurance Industry With a Finance Degree