1 03 Surety Bond vs Insurance What's the Difference

Is a surety bond the same as insurance? Not exactly. Although surety bonds are commonly issued by insurance companies, they serve a different purpose from traditional insurance. In this episode of SuretyPH’s Surety Bond Fundamentals, we explain the basic difference between a surety bond and insurance. Traditional insurance generally protects the insured against specified risks or losses, while a surety bond supports the performance of an underlying obligation. Using a simple contractor example, this video explains why understanding the obligation behind the bond is an important first step when you are required to obtain a surety bond. Whether you are a contractor, supplier, business owner, or professional, SuretyPH helps make surety bonds easier to understand and the inquiry and application process easier to navigate. Learn more or submit an inquiry: www.suretyph.com SuretyPH — Surety Bonds. Made Easier. Important Notice: SuretyPH provides information and facilitates inquiries and applications. Submission of an inquiry does not constitute approval or issuance of a surety bond. Applications are subject to insurer requirements, evaluation, underwriting, terms, conditions, and approval. #SuretyPH #SuretyBond #SuretyBonds #Insurance #PerformanceBond #Contractors #GovernmentProcurement #Philippines