A surety bond works as a form of "insurance" where a person pays a premium for the placement of a bond for work to be done. The bond is for a stated amount. If the person who places the bond does not do the work in a manner as agreed upon, the injured party can then make a claim to the surety for payment of a portion of the bond or its full amount to him or her rather than chasing the person who failed to perform the stated work.Good question.