There are many different bonds that help mitigate against risk. Here are three specifics bonds. Performance bonds are frequently bought by construction companies and contractors, affirming that they will perform their job per the contract agreement. License bonds can almost guarantee that a business will make sure to work within current codes and laws and the business may need a license bond before it can obtain a specific license. A bid bond makes sure that if a bid is submitted and the construction firm or contractors are selected, that they will complete the project. A surety bond provides reassurance in the form of financial compensation. An example of a surety bond, is if you have a liquor license, many states require you to have a liquor bond or also known as a surety bond.