Fidelity and surety bonds serve as a guarantee that one party (the principal) will meet certain obligations to a second party (the obligee). If the principal fails to meet the requirements or terms of a contract, then the surety must pay a pre-determined amount to the obligee. If your small business operates in the construction industry or on public works projects, your company's work may be covered by surety bonds. Fidelity bonds serve as a form of insurance to protect your business against employee theft. A fidelity and surety attorney can defend your company if you're sued by a surety to recover funds it paid to an obligee.