Coverage Guide

Surety & Fidelity Bonds

Contract bonds for government projects and construction, plus fidelity bonds protecting against employee dishonesty and theft.

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Who Needs Surety & Fidelity Bonds?

Contractors bidding on government projects or large commercial contracts typically need surety bonds. Businesses handling money, valuables, or sensitive information need fidelity bonds. These bonds provide financial guarantees to project owners and protect against employee theft.

Government contractors

Construction companies

Financial institutions

Property management companies

Janitorial and cleaning services

Healthcare facilities

$50B+

in surety bonds issued annually

Common Risks Protected Against

Surety & Fidelity Bonds helps protect your business from these common exposures and potential losses.

Bid Bonds

Guarantees you'll enter the contract if awarded the bid.

Performance Bonds

Ensures project completion according to contract terms.

Payment Bonds

Guarantees payment to subcontractors and suppliers.

Employee Theft

Protection against dishonest acts by employees.

Fiduciary Bonds

Coverage for those managing others' assets.

License Bonds

Required bonds for certain business licenses.

What's Typically Covered

Bid bond guarantees

Performance bond obligations

Payment bond requirements

Employee theft and dishonesty

Forgery and alteration

Computer fraud coverage

Money and securities theft

ERISA bond requirements

Common Exclusions

Acts by owners or partners

Losses discovered after policy period

Indirect or consequential losses

Inventory shortages without proof of theft

Trading losses

Government fines and penalties

Industries That Commonly Need This Coverage

Government Contractors Construction Builders & Developers

Frequently Asked Questions

Common questions about surety & fidelity bonds

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A Surety Bond is a three-party agreement that guarantees you'll fulfill contractual obligations or comply with regulations. Unlike insurance, bonds protect the party requiring the bond (not you). Common types include contractor license bonds, bid bonds, performance bonds, and payment bonds. Government contracts, licensing requirements, and many private projects require surety bonds.

We specialize in commercial Property & Casualty insurance for small and medium-sized businesses across many industries. Our clients include construction contractors, real estate investors, manufacturers, trucking companies, restaurants, retail stores, healthcare providers, and many specialized trades. We focus exclusively on business insurance—not personal lines—so we can deliver deeper expertise.

Independent agents like The P & C Agency represent multiple insurance carriers, allowing us to shop your coverage and find the best combination of price, coverage, and service. We advocate for you—not the insurance company. We handle claims assistance, policy reviews, and certificate requests. Direct carriers only offer their own products and may not have the best fit for your specific needs.

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Download Your Free Surety & Fidelity Bonds Guide

Get our comprehensive PDF guide covering everything you need to know about surety & fidelity bonds, including coverage details, common claims, and tips for choosing the right policy.

Coverage checklist and requirements
Industry-specific recommendations
Claims filing best practices
Cost-saving tips and strategies