Which type of insurance policy covers the misappropriation of goods by an employee?

The fidelity guarantee insurance policy is specifically designed to protect businesses from financial losses caused by the dishonest acts of their employees, including the misappropriation of goods. This type of policy assures employers that they will be compensated for losses incurred due to fraudulent activities, such as theft or embezzlement by employees. The nature of the coverage is crucial, as it focuses on trust and honesty within the employer-employee relationship.

In contrast, the other types of insurance mentioned do not directly address the risks associated with employee dishonesty. Employers’ liability insurance predominantly covers legal liabilities for employee injuries or illnesses arising from the workplace. Money insurance is geared towards covering physical money loss or theft but does not extend to theft of goods by employees. Theft insurance coverage generally protects against losses from theft committed by anyone outside the organization rather than specifically addressing acts of employees. Thus, the fidelity guarantee insurance policy is the most appropriate choice for this scenario.