Surety bonds are becoming ever more important in today’s challenging times. Surety bonds are currently classified as insurance products even though they are more similar to credit institutions. The current climate has created some large surety losses, which is causing many surety companies to tighten up their underwriting requirements. Surety companies underwrite bonds expecting to have zero losses, surety bonds are a means of prequalifying not insurance. When a surety company issues a bond, they are essentially announcing that this company is qualified to perform the work needed to successfully complete the project. This is necessary to order to protect the public interest in projects that are funded through tax dollars. The surety bond is a guarantee that the contractor will complete the project for the amount quoted and on time. As a contractor looking for bonding, its important to differentiate between an insurance specialist and a surety bond specialist because it can make the difference of being approving for a bond. A surety bond specialist knows all the rules and standards of the industry, so they can apply them as necessary for every situation.