Which insurance product directly covers the actions of employees?

Fidelity bonds are specifically designed to protect businesses against losses caused by dishonest or fraudulent actions of their employees. This type of insurance product covers the actions of employees that result in financial loss for the employer. For instance, if an employee embezzles funds or steals company property, a fidelity bond will provide coverage for the financial loss incurred by these actions.

In contrast, property insurance typically protects physical assets such as buildings and equipment, while general liability insurance covers bodily injury or property damage claims made by third parties due to the business operations. Life insurance, on the other hand, provides benefits to the beneficiaries upon the death of an insured individual and is unrelated to employee actions regarding theft or fraud. Thus, the fidelity bond is the most fitting choice when it comes to insuring against the actions of employees specifically.