Insurance protects you in the event something happens, bonds protect someone else if something does not happen as it should. There are three primary classifications of bond: fidelity, surety and contract bonds.
These bonds protect someone against the fraudulent acts of someone else. They are often used in conjunction with crime insurance. Examples would be theft of money by an employee or someone entrusted to handle money.
Bonds, encompassing a wide array of coverages, are broken into some major categories: license & permit, court bonds, probate bonds, foreclosure or redemption bonds and miscellaneous bonds.
Contract bonds, often known as performance bonds, are a guarantee that you will perform a function such as completing a construction job, or complete it on the date specified.