What type of bond protects the owner against liens?

The type of bond that specifically protects the owner against liens is a lien bond. A lien bond serves as a guarantee that the contractor or subcontractor has the necessary funds to pay any claims related to the work performed under a construction contract. By securing a lien bond, the property owner can effectively protect themselves from potential mechanic's liens, which could be filed against the property by unpaid contractors or suppliers. This bond provides a financial assurance that, in case of a lien being filed, the property owner will not face legal complications regarding claims.

In contrast, a performance bond guarantees that the contractor will complete the project as specified in the contract, while a surety bond is a broader term that encompasses various types of bonds used in construction to protect different parties involved. A bid bond, on the other hand, ensures that a bidder will enter into a contract at the price they bid if awarded the contract, but it does not address the issue of liens directly. Thus, the lien bond is the most relevant option for protecting property owners from potential liens.