Fidelity and Surety Bond

A Fidelity Bond is an insurance policy that protects a business against losses caused by the dishonest or fraudulent actions of its employees, such as theft or embezzlement. A Surety Bond is a three-party agreement where a surety company guarantees that a contractor or service provider will fulfill their contractual obligations; if they fail, the bond covers the costs or ensures completion. Essentially, fidelity bonds protect businesses from employee dishonesty, while surety bonds assure clients that contractual commitments will be met.