What type of bond would protect against dishonest acts of employees?

A fidelity bond is specifically designed to protect businesses against losses caused by the dishonest acts of their employees. This includes theft, embezzlement, or other fraudulent actions that may result in financial harm to the employer. The bond provides a financial safety net, ensuring that if an employee commits such unethical acts, the business can recover some or all of its losses through the bond coverage.

In contrast, a performance bond secures the completion of a contract, ensuring that the contractor fulfills their obligations. A surety bond is a broader category that includes various types of bonds, often used to guarantee that one party will fulfill its obligations to another. A contract bond is also related to agreements and may not specifically address employee dishonesty but rather the contract's performance itself.

Fidelity bonds are essential for maintaining trust and ensuring financial protection for businesses from potential internal threats, making them the right choice for addressing losses due to employee dishonesty.