Surety bonds
Fidelity bond
Different animal than a surety bond. Protects a business against employee theft or fraud. Not usually a licensing requirement.
A fidelity bond protects a business against losses caused by dishonest acts of its own employees, such as theft or fraud. In practice it behaves like insurance the company buys to protect itself.
It is easy to confuse with a surety bond, but the two solve different problems: a surety bond guarantees an obligation to an outside party, while a fidelity bond covers internal loss. License requirements are almost always surety bonds, not fidelity bonds.
Related terms
Where this comes up
Fidelity bond is one piece of getting and keeping a business licensed. We handle the filings, bonds, and renewals that surround it across every state where you operate.