What is a "fidelity bond" designed to protect against?

A fidelity bond is specifically designed to provide protection against the dishonest acts of employees. This type of bond serves as a guarantee that the issuer will cover losses incurred by a business due to actions such as theft, fraud, or embezzlement carried out by its employees. The primary purpose is to safeguard employers from financial loss that might arise from these unethical behavior patterns.

In contrast, the other options pertain to different kinds of insurance coverage. Losses caused by natural disasters would be covered under property insurance, while injuries to customers on business premises refer to liability insurance. General liability claims encompass a broader range of risks that do not specifically focus on employee dishonesty. Thus, fidelity bonds play a crucial role in protecting businesses from specific internal risks associated with their workforce.