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Bond insurance, is basically a contract and
guarantee between 3 parties. The bond
parties consist of a Principal
(primary party who will perform the contractual
obligations), an Obligee (the
party who is the recipient of the principal),
and the Surety (the entity that
promises to pay if the principal fails to
perform its obligations.
The Surety for the bond agrees to uphold the
contractual promise for the benefit of the
Obligee in the event the Principal fails to do
so. A bond demonstrates the credibility of
the principal and guarantees performance under
the contract.
A Fidelity bond is a form of insurance that
covers the policyholder for losses that occur as
a result of fraudulent acts by employees or
specified individuals. Employee Dishonesty
bonds and Commercial Crime bonds are the common
forms of Fidelity bonds
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