A type of property insurance that covers the risk of fraudulent acts committed by employees is known as?

The correct choice is a fidelity bond, which is specifically designed to protect businesses against losses caused by fraudulent acts or dishonesty by employees. This type of insurance is particularly important for businesses that handle money or valuable possessions, as it provides coverage for theft or embezzlement that may occur internally.

In essence, a fidelity bond acts as a safeguard for employers, ensuring that if an employee commits a dishonest act resulting in a financial loss, the business has a mechanism for recovery. This coverage can help build trust with clients and stakeholders, knowing that there is protection in place for potential employee misconduct.

Other options like workers' compensation focus on injuries sustained by employees during the course of employment, general liability insurance covers third-party claims for bodily injury or property damage, and commercial property insurance protects physical assets. While these types of insurance are crucial for businesses, they do not address fraudulent actions committed by employees, which is the unique scope of a fidelity bond.