Bonds in insurance are a security or a form of protection for a surety or employer to recoup losses due to the failure of the insured to perform the task described in the insurance contract. The tasks covered and their corresponding contracts are:
For protection against contractor's failure to complete contractual work as per contract.
Bid / Tender Bonds
As security against cost of new tendering should the highest bidder refuse to take up an offer.
Immigration / Security Bonds
These are issued to non-citizens to guarantee their good conduct. The bond offers protection against the cost of deportation or other consequences of the insured's bad conduct