Which type of protection does a Fidelity Bond primarily offer?

A Fidelity Bond primarily offers protection from employee dishonesty. This type of bond is designed to safeguard businesses against losses that result from dishonest acts committed by their employees, such as theft, fraud, or embezzlement. In essence, it serves as a form of insurance specifically aimed at mitigating the financial impact of such acts, which can be particularly damaging to an organization.

This form of protection is crucial for businesses that handle sensitive information or large sums of money, as it provides a safety net that can help recover losses incurred due to fraudulent activities by employees. Fidelity Bonds are often required by employers in specific industries, particularly those involved in financial services, to instill confidence among clients and stakeholders regarding the security of their assets.

The other options do not apply to Fidelity Bonds. For instance, protection against fire losses pertains more to property insurance, while coverage from natural disasters involves different forms of insurance like flood or earthquake insurance. Theft of property can be addressed through general liability or property insurance, but it does not specifically target the actions of employees in the manner that a Fidelity Bond does.