What remedies can a surety company pursue after paying a claim?

A surety company can pursue multiple remedies after it pays a claim, with the most common being seeking reimbursement from the principal. When a surety pays out a claim to the obligee (the party that benefits from the bond), it then holds the right to be reimbursed by the principal (the party that obtained the bond), as the principal is ultimately responsible for fulfilling the obligations covered by the bond.

Additionally, the surety may explore other legal remedies to recover its losses. This can include pursuing claims against additional parties or assets, depending on the circumstances surrounding the default and the specific terms of the surety agreement.

The option that states "Only claims against insurance policies" is limited in scope because while a surety may at times consider pursuing claims related to insurance, it is not the sole avenue available to them. Therefore, the combination of reimbursement from the principal and the potential for other legal remedies represents a broader and more accurate understanding of the options available to surety companies after a claim is paid.