Even though you can usually purchase a surety bond through an insurance company, surety bonds and insurance are not the same. They are both forms of financial protection, but there are a few key differences.
Surety bonds ensure a commitment by the principal, and loss is not expected.
Insurance guarantees a coverage of losses and is meant to protect the consumer buying the policy.
Surety bonds require a one-time payment.
Insurance is often paid in monthly premiums.