What is typically covered under a fidelity bond?

A fidelity bond primarily covers the honesty and integrity of personnel, specifically protecting an organization from losses resulting from dishonest acts such as theft or fraud committed by its employees. It serves as a financial guarantee that the bonded individual will conduct their duties honestly and ethically. This type of bond is especially important for businesses that handle large amounts of money or sensitive information, providing a safety net against employee misconduct.

In the context of the other options, property damage claims, contractual obligations, and health-related expenses fall under different categories of insurance coverages. Property damage pertains to physical losses associated with the destruction or damage of property, which is not addressed by a fidelity bond. Contractual obligations are usually covered by liability insurance or specific performance bonds, while health-related expenses are typically covered by health insurance policies. None of these are relevant to the purpose of a fidelity bond, which is focused on protecting against employee dishonesty.