What type of risks does fidelity bond insurance protect against?

Fidelity bond insurance specifically protects businesses against losses caused by fraudulent acts or dishonesty of employees. This coverage is designed to mitigate risks associated with employee theft, embezzlement, or any other form of fraud that may result in financial loss for the employer. By securing this type of insurance, businesses can safeguard their assets and ensure that they are compensated for losses incurred due to employee misconduct.

The other options focus on different types of risks. Coverage for fire and natural disasters falls under property insurance, rather than fidelity bonds. Likewise, damage to cars in accidents typically falls under auto insurance, while theft of office equipment may be covered by general business property insurance or specific crime insurance policies, but not fidelity bonds. Therefore, fidelity bonds are uniquely positioned to address the specific risks related to employee actions, making the second option the correct choice.