What distinguishes a Fidelity Bond from other types of bonds?

A Fidelity Bond is specifically designed to protect businesses from financial losses that result from dishonest acts committed by employees. This type of bond serves as a safeguard against various fraudulent activities, such as theft, embezzlement, or other forms of dishonesty that could impact a company's financial integrity.

The other options address different areas of insurance coverage or legal obligations that are not the focus of a Fidelity Bond. For example, the coverage of employee injuries pertains to workers' compensation insurance, while guarantees related to property damage usually fall under general liability insurance or property insurance categories. Additionally, whether or not a bond is legally required is not a defining characteristic of a Fidelity Bond. Instead, the key aspect that sets it apart is its specific focus on protecting against employee dishonesty, making this bond particularly valuable for organizations that want to mitigate the risk associated with potential internal threats.