Contract Surety and Commercial Surety are the two main categories of surety bond issuance; however, they are separate and distinct product areas. Contract (surety) bonds, often known as construction bonds, are exclusively secured for contractors involved in construction projects. These include, for example, bid bonds, payment and performance bonds, and maintenance and supply bonds.

Commercial bonds are surety bonds with which there are no contracting guarantees associated. The commercial surety market has expanded substantially in recent years to include a wide range of bond types with innovative new products being added regularly. Generally, commercial bonds refer to “non-contract” surety bonds.

Examples of Commercial bonds include

License and Permit Bonds (bonds required by the government for a business to legally operate) and Public Officials Bonds (bonds required of public officials by the government which guarantee the integrity of performance of official duties).