Bonds

Fidelity and Surety Bonds are agreements between one party, "the surety", to answer to a third person, "the obligee", for debt or default of another party, referred to as the "principal."  In other words, "the surety", who is usually an insurance company, guarantees a certain type of conduct on behalf of the "principal", and if that conduct is not completed or fails, then "the surety" or insurance company is responsible to make payment to "the obligee."

Fidelity bonds protect "the obligee" against dishonesty on the part of his or her employees and are referred to as "Employee Dishonest Insurance."

Surety bonds "guarantee" the performance of the person being bonded and that person's ability and financial capacity to complete the obligations stated within the contract.  Surety bond types include: Contract Bonds, Court Bonds, License and Permit Bonds, Public Official Bonds, Miscellaneous Bonds, and Payment & Performance Bonds.