What sort of policy covers the dishonest misappropriation of goods by an employee?

A fidelity guarantee policy is specifically designed to protect businesses against losses resulting from the dishonest actions of their employees, such as theft or misappropriation of goods. The coverage provided by this type of policy is aimed at situations where an employee deliberately engages in fraudulent activities, causing financial loss to the employer. This type of insurance is essential for businesses that rely on employee trust and face risks associated with employee dishonesty.

Employers' liability insurance primarily covers businesses against claims from employees who suffer injuries or illnesses due to their work environment. While it protects the employer from legal liabilities, it does not cover loss of goods or misappropriation caused by employees.

Money policies generally provide coverage for the loss of physical money rather than the misappropriation or dishonest acts carried out by employees concerning goods.

Theft policies cover loss due to theft but typically do not address the nuances of employee dishonesty in the same way that a fidelity guarantee does, which specifically focuses on the internal risk of an employee’s deliberate wrongful acts.

Therefore, a fidelity guarantee policy is the most appropriate option for covering the dishonest misappropriation of goods by an employee.