What type of bond guarantees that certain acts will not be committed?

A fidelity bond specifically serves to protect against employee dishonesty or fraudulent acts. It guarantees that certain acts, particularly those related to theft, embezzlement, or fraud by employees, will not be committed. When an employer obtains a fidelity bond, they are essentially ensuring that their business is safeguarded from losses caused by the dishonest actions of their employees.

Fidelity bonds are particularly common in industries where employees have access to cash, sensitive information, or valuable property. The bond acts as a financial safety net, reimbursing the employer up to the bond's limit in the event of a validated claim due to employee wrongdoing.

In contrast, a performance bond ensures that a contractor fulfills their contractual obligations, a surety bond is a broad category that can guarantee various compliance requirements, and a bid bond is specifically related to guaranteeing the submission of a bid for a contract. These options do not focus on preventing specific acts of dishonesty. Hence, the fidelity bond stands out as the appropriate choice for guaranteeing that certain wrongful acts will not be committed.