What is the main purpose of 'fidelity insurance'?

Fidelity insurance is specifically designed to protect businesses from losses that occur as a result of employee dishonesty, such as theft, fraud, or embezzlement. This type of insurance helps safeguard a company’s financial assets by covering the financial damages it suffers when an employee commits dishonest acts that result in a loss.

This important coverage reassures business owners that they will not face catastrophic financial impacts solely due to the unethical actions of their employees. This aligns with the purpose of fidelity insurance to mitigate the risks associated with employee reliability and integrity.

In contrast, the other options address different types of insurance or employee benefits that do not relate to the nature of fidelity insurance. Health insurance benefits focus on employee well-being and medical costs, property damage coverage relates to physical damages from accidents or natural disasters, and business continuity insurance pertains to maintaining operations during disruptive events. None of these align with the specific goal of fidelity insurance, which is strictly concerned with employee-related financial misconduct.