Many people mistake surety bonds for insurance, but in reality they are more of a guarantee. See surety bonds are bonds that someone would get to guarantee that a project would get finished or to guarantee that they will receive a payment. You can get surety bonds for almost any project you can think of. For example let’s say you hire a contractor to build you a house you give that contractor a lot of money up front for supplies and labor so if you’re worried that the contractor might leave the project halfway and then you lose all that money you gave that contractor you would get a surety bond to insure that your house gets finished. Or maybe you are a software developer and you get hired to develop some software for a company and your worried they might not pay you once the software is finished so to guarantee you get paid you would get a surety bond.