Which insurance type protects against dishonest acts by individuals?

Fidelity bonding is specifically designed to protect businesses from losses incurred due to dishonest acts by employees or third parties. This type of insurance covers a range of dishonest behaviors, such as theft, embezzlement, or fraud, providing financial protection to the business in case such actions occur. It acts as a safeguard, ensuring that businesses can recover from the financial damages caused by the dishonest acts of individuals working for or involved with the organization.

Other types of insurance, while important in their own right, do not address dishonesty specifically. Fire insurance, for example, protects against losses resulting from fire-related incidents, and workers' compensation covers employee injuries occurring on the job. Boiler and machinery insurance focuses on equipment breakdown and related operational risks. None of these options provide coverage against the dishonest acts of individuals, highlighting the unique role that fidelity bonding plays in risk management for businesses.