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No. Generally,there are four types of surety bonds:
So, when someone advertises that they are licensed and bonded, they are not telling the truth?
The term "licensed and bonded" simply means that the contractor is licensed by the state and the term bonded means that the contractor has a bond with either a bank or insurance company that would cover jobs to a specific amount. Additionally bonds may be required if the contractor's general bond amount is lower than what is necessary for a particular job.
So to answer your question, a general bond can be acquired through a bank or insurance company. It is simply a set aside savings account opened up by the contractor that covers the contractor for a certain amount of liability. I hope this helps. Surety bonds are separate from general bonds.
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