A surety bond is a binding contract between three parties: the principal (you or your business), the surety (State Farm), and the obligee (the customer/entity requiring the bond). The surety guarantees to an obligee that the principal will act in accordance with the terms of the bond.
You may be obligated to provide a bond as part of a business license or contract requirement. Being bonded may also help you attract new business. Potential clients might take comfort in knowing they will be protected by it.Fidelity bonds are insurance policies that offer businesses protection against loss of money and securities caused by fraudulent or dishonest acts committed by employees.
Common types of fidelity bonds include: