What is a surety bond?
A surety bond works as a type of insurance policy to insure that one party (the obligee) will be paid a certain amount if another party (the principal) fails to meet some type of obligation, for example fulfilling the terms of a construction contract.
When Do I need a surety bond?
Any Federal construction contract valued at $150,000 or more requires a surety bond when bidding or as a condition of contract award. Often times surety bonds are required by state and municipal governments as well as private industries. Many service contracts, and occasionally supply contracts, also require surety bonds.

History of Surety Bonds
The origin form of suretyship is represented in individual surety bonds. A Mesopotamian tablet dated from around 2750 BC is the earliest known record of a contract of suretyship.
The earliest known mention of suretyship in a legal code is The Code of Hammurabi dated from around 1790 BC
The Fidelity Insurance company became the first US Corporate Surety Company in 1865 but soon after the venture failed.
The Heard Act, passed by congress in 1894, required surety bonds on all federally funded projects. The Heard Act was replaced by the Miller Act in 1935 which is the current law mandating the use of surety bonds on federally funded projects.
Need a Surety Bond? Service Insurance Company provides surety bonds to Connecticut, Delaware, Maryland, Massachusetts, New Hampshire, New Jersey, New York, Pennsylvania, Rhode Island, and Virginia. Contact us by calling 973-731-7650 or by visiting our website http://www.serviceinsurancecompany.com
This content has been taken from https://jamesburgersite.wordpress.com/2016/06/23/all-about-surety-bonds/