What does fidelity bonding specifically protect against?

Fidelity bonding specifically protects against losses resulting from employee theft or dishonesty. This type of bonding serves as a safety net for businesses by providing financial protection in cases where employees commit acts of fraud or theft. In essence, it ensures that the business is compensated for direct financial losses due to an employee's dishonest actions, which can include theft of money, securities, or other valuable assets.

Other options do pertain to different aspects of insurance coverage. For instance, property damage from natural disasters or accidents would instead be covered under property insurance policies. Accidental injury claims generally fall under liability insurance. Hence, fidelity bonding is uniquely focused on protecting against the specific risk posed by employee dishonesty.