The distinction between insurance and surety bonds isn’t always clear, so we’ve created a visual showing the differences and similarities between the two.
The surety and insurance industries use the same concepts when placing business, but use different terms to describe each concept. Here are some of the most common surety terms translated for the insurance industry.
Surety Term | Insurance Term |
Principal | Insured |
Surety | Insurer |
Rider | Endorsement |
Execution | Binder |
Bond | Certificate of Insurance |
Penalty | Coverage Amount |