Ever heard of a bond being needed for an unemployed person? Allow me to demonstrate why that might be needed. Let us assume I am unemployed and I am seeking a job outside my field. I do need the money badly. Tiffany’s the high class jewelry company hires me, but I must be bonded first. Hopefully, I can be bonded and there is nothing in my past to stop the company from issuing a surety bond on my behalf. Tiffany’s does not know me well, perhaps I will be tempted to take a few pieces of jewelry and disappear.
Tiffany’s is the obligee, for whom I am working. The principal is myself, being insured in case I get sticky fingers. The surety-bond company is insuring that If I am dishonest they will cover the expenses of the missing jewelry. The only difference here is that Tiffany’s is paying the interest bond. Or I am through a lower salary.
Some jobs require surety bonds like working for government agencies.