Which of these statements about Fidelity Bonds is accurate?

Fidelity bonds are specifically designed to protect against losses that occur due to dishonest acts by employees or contractors, such as theft or fraud. This characteristic is fundamental to fidelity bonds and distinguishes them from other forms of insurance, like general liability insurance or property insurance. Rather than covering natural disasters or requiring immediate reporting of all losses, fidelity bonds focus entirely on providing financial protection against the risk of dishonesty in the workplace.

The nature of fidelity bonds makes them particularly important for businesses that handle money or sensitive information, as they help maintain trust and financial stability. Therefore, it is accurate to assert that they cover acts of dishonesty, aligning with the primary purpose and functionality of this type of bond.