Surety Bond

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What it is: A guarantee—not traditional insurance—that a business will meet obligations.
Who it’s for: Contractors, licensed professionals, and businesses required by contracts or regulations.

How it works (simple):

• If you fail to meet an obligation, a claim can be paid.
• You may have to repay the bond company (that’s a key difference from insurance).

Common types: contractor bonds, license/permit bonds, performance bonds.