Is a surety bond the same as insurance?

No. Insurance protects you from unexpected losses. A surety bond protects the party requiring the bond (the obligee) if you fail to perform your obligations. Critically, if a surety bond is paid out, the surety seeks full reimbursement from you. You are expected to repay the surety. This is why bond underwriting reviews your financials and credit -- the surety is effectively extending you credit. Contractors and businesses must understand this distinction before purchasing a bond, particularly for large performance bonds where the repayment obligation can be substantial.