A surety Bond is a contract among at least three parties:
Fidelity Bonds are designed to protect against dishonesty. Generally, the bond protects against dishonesty of employees. These bonds cover losses arising from employee dishonesty and indemnify the principal for losses caused by the dishonest actions of its employees.
- The obligee - the party who is the recipient of an obligation,
- The principal - the primary party who will be performing the contractual obligation,
- The surety - who assures the obligee that the principal can perform the task
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