These bonds are purchased by an employer that protects their business from losses due to fraudulent acts by others, including other employees or contracted employees.
These bond are usually required by a municipality or other public services in order to participate in an event or service, such as auctioneers or collection agencies.
Contractors obtain theses types of bonds for work to be completed as promised, such as home improvements.
Banks and other financial facilities purchase these for their mortgage brokers as part of state regulations and requirements for their business.
These are broadly labeled to encompass all of the aforementioned bonds plus other types. Overall, these are typically obtained by consumers in exchange for services or products.