Bonds are designed to protect your customers and clients; insurance is designed to protect you and your business. Surety bonds can be used to compensate someone who makes a claim against your business, but you will need to repay the surety if this happens. It will not cover your legal expenses or other costs associated with the claim. Insurance, pays your legal costs and compensates the claimant. You can also purchase policies to cover additional events, such as workplace injuries or damage to your business property, that surety bonds do not cover. Your insurer will not ask to be repaid when they pay a claim.