What is a common term for the coverage of employees against dishonest acts?

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The coverage that protects employees against dishonest acts is commonly referred to as a Fidelity Bond. This type of bond is specifically designed to provide financial protection against losses resulting from employee theft, fraud, or dishonesty. It serves as a safeguard for businesses, ensuring that they have recourse to recover funds lost due to such dishonest acts.

In understanding the context of the other options: General Liability provides coverage for third-party claims of bodily injury, property damage, and personal injury but does not cover employee dishonesty. Workers Compensation covers medical expenses and lost wages for employees injured on the job, rather than addressing acts of fraud or theft. Directors and Officers Insurance is focused on protecting the personal assets of corporate directors and officers from claims of wrongful acts in their capacity as leaders of the company, not specifically on employee dishonesty. Thus, Fidelity Bonds are the most suitable term for coverage against dishonest acts committed by employees.

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