Which of the following is NOT covered by a Fidelity Bond?

A Fidelity Bond is designed to protect a business against specific losses caused by dishonest acts of its employees, including theft, fraud, and embezzlement. This means that the correct answer is the option referring to acts of fraud by third parties, as fidelity bonds primarily cover losses directly related to employees’ dishonest behavior.

Fidelity bonds provide coverage specifically for employee-related misconduct, including theft of money and other forms of dishonesty among employees, which are explicitly included in the bonding agreements. In contrast, acts of fraud by third parties fall outside the intention of a fidelity bond, as it does not cover fraudulent acts committed by individuals who are not employed by the organization. Such external fraud would require different forms of insurance protection, such as general liability or crime insurance, which are designed to address risks related to third parties.

Thus, understanding the specific intent and coverage of a Fidelity Bond is crucial for businesses to ensure they have the right protections in place against various risks.