What is employee dishonesty coverage designed to protect against?

Employee dishonesty coverage is specifically designed to protect businesses from financial losses that arise due to fraudulent acts or dishonest behavior by employees. This type of coverage addresses situations such as theft of money, property, or confidential information committed by employees, which can significantly impact a company's finances and operational integrity.

The focus of this coverage is to mitigate the risks associated with an employee's untrustworthy actions, providing businesses with reassurance and financial support in the event of such incidents. It's a critical component of a comprehensive risk management strategy, especially in industries that handle substantial amounts of money or valuable assets.

In contrast, the other options do not align with the purpose of employee dishonesty coverage. Losses from fire damage, natural disasters, and general business risks fall under different coverage types such as property insurance or business interruption insurance. Each of these areas addresses specific risks and does not provide protection against the internal threats posed by employees.