What type of insurance protects organizations against dishonest or fraudulent internal employee behavior?

Fidelity insurance is specifically designed to protect organizations from losses caused by dishonest or fraudulent acts committed by employees. This type of coverage addresses the risks associated with internal misconduct, such as theft, embezzlement, or other forms of fraud that can significantly impact an organization’s financial standing.

Organizations recognize the potential for insider threats and the significant financial repercussions that can arise from such behavior. Fidelity insurance serves as a safeguard against these risks, providing financial compensation for losses incurred due to the actions of dishonest employees.

In contrast, business continuity insurance focuses on ensuring that operations can continue during and after a disaster or significant disruption, while errors and omissions insurance protects organizations against claims arising from mistakes or negligence in providing professional services. Extra expense coverage typically helps cover costs incurred to minimize the interruption of business operations, but it does not specifically target internal fraud or dishonesty. Therefore, fidelity insurance stands out as the appropriate choice for addressing the risks related to employee misconduct.