Question : What is the difference between a Fidelity Bond and a Surety Bond?
Hi – Just wondering what the difference is between the Fidelity Bond and Surety Bond and how they would relate to a service business?
surety bond

Best answer:

Answer by zeuz
Fidelity bond – A debt obligation serving to protect an employer from loss in the event that its employees cause damages through dishonest or negligent action. Insurance companies and securities firms are often required to possess a fidelity bond.
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Surety bond – A bond issued by an entity on behalf of a second party, guaranteeing that the second party will fulfill an obligation or series of obligations to a third party. In the event that the obligations are not met, the third party will recover its losses via the bond.