These are guarantees issued by insurers attesting to the credibility of an individual or an organization. Performance Bonds & Advance Payment Bonds are the basic types of bonds issued by insurers.
Performance Bond – is a guarantee by an Insurer that in the event a contract is not executed, as demanded by the principal, the Insurer will meet any shortfall.
Advance Payment Bond – guarantees that in the event that any advance payment to a contractor, in executing a contract, is made away with or utilized contrary to the requirements of the principal, the insurer will meet such default.