In a general sense, a fidelity bond guarantees the person, while a surety bond guarantees the performance. So, in other words, a fidelity bond is specific to the individual to which it is issued.

A surety bond, on the other hand, is specific to the job being contracted. This type of bond can also be broken up into a wide variety of types, from payment bonds to performance bonds, etc.

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The short answer is that it's a guarantee.  It is a promise to be liable for the debt, for default, or, for the failure of another sort.  It basically is a Third Party's (the surety) guarantees either the obligations or performance of a second party (the principal) to yet a third party (the obligee).

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Examples would include a proposal, or bid bonds, payment bonds, performance bonds, labor and material bonds, maintenance bonds, and supply bonds. 

State and federal law requires these types of bonds for most public construction projects that private developers do.

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Will the credit pull for the bond affect my credit?  The credit pull for the bonds isn't as in-depth nor invasive as say a car loan or a mortgage loan credit review. 

Usually, a credit review for surety bonds only requires a 'soft pull', which means that there is minimal impact on your credit score and will only be for a short period of time.  Usually.

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Well, the surety bond will guarantee that a contractual obligation will be fulfilled, as promised. 

In the construction industry, for example, the surety bond typically will guarantee that the contracted construction project will be completed according to the terms and conditions put forth in the contract.  

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New business owners might be expected to have to pay more for their bonds depending on the extent of their financial history.

A new business owner that has a good credit score and has an, otherwise, sound financial history can usually get a competitive rate.

A higher fee might be expected because some new business owners haven’t had the chance to establish a strong line of credit yet.

They may reasonably be charged a higher fee since the surety provider can’t confirm their financial accountability.

No. Bonds and insurance are two completely separate means of financial protection.

Insurance is basically a risk-transfer tool between two parties where individuals that are exposed to similar types of risks will contribute premiums into an insurance pool.

Surety bonds act as three-party risk-mitigation contracts where there is not expected to be a financial loss.

Surety bond premiums typically only cover the costs of the qualifying services and the costs of the  underwriting processes. Unlike insurance policies–which act as a retroactive protection–bonds work like a type of credit where the principal is liable for claim payments in the event of a default. Thus bonds encourage professionals to act in an appropriate manner in order to avoid claims that could arise.