All of the above.
A surety bond is a type of contract between three parties: the obligee, the principal, and the surety. The obligee requires the principal to provide a surety bond or bond guarantee so the principal will fulfill their obligation. The bond covers the loss for any damages sustained by the obligee because of the principal's failure to perform. Surety bonds can be applicable to anything from construction projects and watercraft to covering the loss of funds associated with contracts.