Principal

Insurance often will use legal terms that you will find under Black's Law Dictionary. Principal is defined there are as, "the person primarily liable".

If there is a contract in place that all persons who have part of the obligation to perform the promise stated in the contract will be considered principals. Examples of such could be the contractor who builds a house for you or someone who sells you something and collect the tax necessary to be paid to the government.

In respects to surety bonds you will see that the bonds are a three party contract consisting of the principal, the obligee and surety.

Talk to your agent or broker if you have questions about your bonds. Take control of your insurance.

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