A surety bond is a written agreement that guarantees the performance of an obligation. Another name for it is suretyship agreement. Surety bonds usually provide for monetary compensation to be paid in the event that a principle fails to perform as specified in a bond. A surety bond is not insurance, but it is a risk transfer mechanisms. It shifts the risk of doing business with the principle from the obligee to the surety. Freedom Insurance Services has access to a handful of A+ (Superior) rated sureties to take the risk out of your business.