Aren't surety bonds the same as insurance policies?

Jay asked this on June 18, 2011 in Surety Bonds

SuretyBonds.com answered this on June 18, 2011

Surety bonds are not insurance policies and should not be confused as such. Although insurance companies do underwrite some surety bonds, they are a completely separate product. Insurance polices are retroactive recovery tools that protect policyholders whereas surety bonds are preventative risk mitigation tools that protect consumers.