What does Fidelity Guarantee Insurance protect a business against?

Fidelity Guarantee Insurance primarily protects a business against losses incurred from dishonest acts by employees. This type of insurance covers financial losses resulting from theft, fraud, or other forms of dishonesty committed by employees while they are performing their duties. The purpose of having this insurance is to secure the company’s assets and ensure that it is financially protected against the risk of employee misconduct.

Businesses can be particularly vulnerable to internal theft or fraud, especially if they handle significant cash flows or valuable assets. Having Fidelity Guarantee Insurance in place helps to mitigate the financial impact of such dishonest actions, offering business owners peace of mind that they will not bear the full brunt of any losses stemming from employee dishonesty.

In contrast, the other options mentioned—loss from natural disasters, market fluctuations, and product recalls—relate to different areas of risk management. Each of these issues is covered by other types of insurance policies or business strategies that specifically address those risks, rather than the focus on employee-related dishonesty that Fidelity Guarantee Insurance emphasizes.