What does Obligor mean? Read on to discover the definition & meaning of the term Obligor - to help you better understand the language used in insurance policies.
A person or organization that is bound by an obligation to another. In a bonding situation, this party, commonly called the "principal," purchases a bond to protect the party to whom it owes an obligation. For example, under a performance bond, the obligor is the contractor that is required to perform the specified work for the project owner.
We hope the you have a better understanding of the meaning of Obligor.