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(Disclaimer: Please discuss this with your insurance agent)

There are also completion/performance bond. A totally different animal. Usually for large or government jobs.  "A financial contract that insures a given project will be completed even if the producer runs out of money, or any measure of financial or other impediment occurs during the production of the project."


Bonding insurance is designed to guarantee the security of working with a service provider. Many service providers such as housekeepers, landscapers and construction personnel purport to be "bonded" but very few consumers actually know what that means. Bonding is a form of insurance that allows homeowners and other consumers to act with relative certainty that their investment is protected.

Significance
Bonding insurance is carried by most types of workers who have close contact with the personal property of a client. In the case of maid services or housekeepers, who often have access to large amounts of personal property, the bonding service guarantees that, if the bonded person is convicted of theft, the bonding company will pay the amount stolen directly to the aggrieved party. After the payment is made, it's the responsibility of the bonding company to exact payment from the bonded employee.