Quick Answer A surety bond is a three-party agreement that protects an obligee from the principal's failure to meet an obligation. A fidelity bond is a two-party agreement that protects a business from theft or dishonest acts committed by its own employees. The two are often grouped together because they're sold by the same providers, but they cover opposite scenarios — surety protects outsiders FROM the bondholder; fidelity protects the bondholder from their own employees. If you've ever been told you need to be "bonded," the bond ...Read More