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​SURETY BONDS
A surety bond is a legal document guaranteeing the completion of a contract. It requires the person performing the job to pay a specific amount of money to a bond company in order to guarantee performance. You, as a business owner, may pay to give your customer peace of mind. Alternatively, you may require independent contractors or subcontractors who work for you to pay to guarantee the work that you hire them to do is completed properly.
FIDELITY BONDS
Fidelity bonds are a type of surety bond designed to protect your business and your customers. Depending on the type of bond you purchase, you may be covered against specific types of loss:

• Employee theft and dishonesty
• Loss due to false or forged documents – these documents would have been used in good faith but caused a loss when the forgery was discovered.
• Loss due to counterfeit or unauthorized instructions – forged signatures on checks, theft of customer information, unauthorized use of bank account information
• General theft and fraud

In the case of fidelity bonds, the loss experienced affects both your customers and your business, both of whom must be protected. While there are specific limitations with fidelity bonds, they can give you, as a business owner, peace of mind.