What do Fidelity Bonds protect against?

Fidelity bonds are a type of insurance specifically designed to protect businesses against financial loss resulting from the dishonest or fraudulent acts of their employees. This coverage can include theft, embezzlement, and forgery, among other forms of employee misconduct that can lead to direct financial harm to the organization.

This means that if an employee engages in acts that result in the loss of money or property belonging to the employer, a fidelity bond can help to recover those losses. The focus is distinctly on the integrity and behavior of employees, reflecting the nature of risks that businesses face when trusting individuals with financial responsibilities.

In this context, other options discuss different types of coverage unrelated to employee dishonesty. For instance, injury claims from employees pertain to workers' compensation insurance, which covers medical and legal costs related to workplace injuries, while property theft refers to general property coverage, which addresses unauthorized removal of property. Accidental damages to company vehicles would fall under auto liability or collision coverage, irrelevant to the fidelity bond’s intended purpose. Therefore, fidelity bonds specifically protect against the financial loss tied to employee dishonesty, making that the correct answer.