Who is referred to as the insurer under a surety bond?

In the context of a surety bond, the term "insurer" refers to the surety. The surety is the party that guarantees the obligation of the principal to the obligee. Essentially, the surety provides a financial backing to ensure that the principal will fulfill their contractual duties or obligations. If the principal fails to do so, the surety steps in to cover the loss or complete the obligation, thereby protecting the interests of the obligee.

While the obligor (or principal) is the party that needs to perform the task (like a contractor), and the obligee is the party that requires the bond (often a project owner or government entity), it is the surety that acts as the insurer, standing behind the promises made by the principal. This duty of the surety is a crucial aspect of how surety bonds operate in project financing and contract assurance.