Registered Insurance Brokers of Ontario (RIBO) Practice Exam

Fidelity insurance is designed specifically to protect businesses from losses caused by dishonest acts of employees, such as theft or fraud. This type of coverage is crucial for safeguarding a company’s assets when an employee misappropriates funds or engages in other forms of dishonesty.

Property insurance, on the other hand, primarily covers physical assets like buildings, equipment, and inventory against risks such as fire or theft, but does not specifically address losses due to employee misconduct. General liability insurance provides protection against third-party claims for bodily injury or property damage stemming from business operations, which is not relevant to internal employee actions. Commercial auto insurance pertains to vehicles used for business purposes, covering risks associated with vehicle accidents, but it does not extend to employee dishonesty.

Thus, fidelity insurance is the most appropriate choice for protecting against the risk of employee dishonesty, making it the correct answer.