What is a fidelity bond designed to protect against?

A fidelity bond is specifically designed to protect organizations from losses that occur due to fraudulent acts committed by specific individuals, typically employees. This type of bond serves as a financial guarantee, ensuring that if an employee engages in dishonest behavior—such as theft, embezzlement, or other forms of fraud—the company can recover a specified amount of money from the bond.

Fidelity bonds are critical in maintaining trust and security within a business, as they provide a safety net against the potential financial damage caused by employee actions. The bond can help cover the costs incurred and serves as an assurance to stakeholders that the organization has taken proactive steps to mitigate such risks.

The other answer choices refer to different types of insurance or risk management tools that do not align with the specific purpose of a fidelity bond. For instance, losses from natural disasters would typically be covered by property insurance, loss of revenue from reduced sales would relate to business interruption insurance, and injury claims from employees would fall under workers' compensation insurance. Each of these addresses different types of risks, highlighting the distinct role that a fidelity bond plays in safeguarding against employee dishonesty.