What is a Fidelity Bond designed to protect against?

A Fidelity Bond is specifically designed to protect businesses from losses incurred as a result of employee theft or dishonesty. This type of bond serves as a form of insurance that provides a financial safety net in cases where employees steal money or property from the company or commit fraudulent acts.

In the context of employee theft, a Fidelity Bond ensures that if an employee engages in wrongful acts that lead to financial loss for the organization, the bond can cover these losses up to the specified limit of the bond. This protection is crucial for businesses, as employee theft can lead to significant financial challenges and may even jeopardize their operational stability. The bond is typically a preventative measure that helps businesses recover from such incidents and reinforces the idea of trust, accountability, and security within the workplace.

Other options listed, while related to various types of insurance products, do not directly capture the essence of what a Fidelity Bond is intended for. Options involving natural disasters, professional service liabilities, and property damage due to negligence pertain to different forms of coverage that do not encompass the specific protection offered against theft or employee dishonesty.