What type of insurance provides protection against losses from employees' fraudulent or dishonest actions?

Fidelity bonds are a specific type of insurance designed to protect businesses from losses caused by the fraudulent or dishonest actions of their employees. This coverage is particularly important for companies where employees have access to cash, securities, or other property that could be misappropriated.

Fidelity bonds typically cover various dishonest acts such as theft, embezzlement, forgery, and other fraudulent activities that employees may commit while working for the business. This type of insurance helps employers mitigate the financial impact of these actions, providing both a safety net and peace of mind regarding the integrity and trustworthiness of their workforce.

Other types of insurance mentioned in the options, such as liability insurance, property insurance, and comprehensive coverage, do not specifically address the unique risks associated with employee dishonesty. Liability insurance generally covers claims against the business for negligence or harm caused to third parties, property insurance protects physical assets from loss or damage, and comprehensive coverage typically refers to a type of auto insurance that covers various types of damage or loss to a vehicle that are not collision-related. None of these directly address employee-related fraud, which is why the fidelity bond is the correct answer.