Which bond protects consumers against dishonest behavior by contractors?

A fidelity bond is specifically designed to protect consumers from losses incurred due to dishonest acts committed by contractors or employees. This type of bond ensures that if a contractor engages in fraudulent behavior, such as theft or embezzlement, the bond will cover the financial losses suffered by the consumer.

Fidelity bonds are often a requirement for contractors in various industries, as they help to build trust and provide assurance to clients that they are working with honest professionals. In contrast, performance bonds are focused on ensuring that a contractor completes the job according to the contract, while insurance bonds typically cover liabilities or damages that occur during the project. Guarantee bonds are generally linked to the guarantee of the completion and performance of the work, rather than directly addressing dishonest behavior.

Therefore, the fidelity bond stands out as the option that directly addresses consumer protection against dishonest actions.