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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 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: