While insurance is a common need for all business, commercial contractors often have special needs in addition to their insurance coverages. Whether you are a “typical” commercial general contractor or a specialty contractor, many of the entities (especially public) you work for may require a performance and payment bond. These bonds guarantee that the contractor will perform the work according to the contract to completion and pay all subcontractor and suppliers. These are typically referred to as Contract Surety Bonds. The most important thing to note is that bonds are not insurance products. Unlike insurance whose premiums are based on expected losses, bonds are underwritten similar to a bank loan…