Surety Bonds Protection provided by a bond is not insurance, it is a financial guarantee provided by the surety (the guarantor). Coverage under an insurance policy involves a two-party agreement. However, in a bond, the person who pays the premium (known as a principal) is bonded for an action by a surety for the benefit of a third party (commonly called a beneficiary). Bonds are distinguished between surety bonds, which guarantee the performance of a contract, and fidelity bonds, which protect against the dishonesty of employees.Call our office and ask to speak with an agent regarding this and other methods of protecting your business and assets. Let Us Quote on Your Companies Bonding Insurance. Find Your Perfect Fit Name Email Phone Question Thank you! Oops!