Which type of insurance provides coverage for losses arising from fraudulent acts by employees?

Fidelity coverage specifically addresses the risk of loss due to fraudulent acts committed by employees. This insurance is designed to protect businesses from financial loss resulting from theft, embezzlement, or other dishonest acts perpetrated by employees or trusted individuals. By providing a safety net against these risks, fidelity coverage is essential for organizations that rely on employees handling funds or sensitive information, ensuring that any malfeasance will not lead to insurmountable financial losses for the company.

In contrast, other types of insurance listed do not focus on employee fraud. Business interruption insurance covers loss of income due to events that disrupt normal business operations, such as natural disasters or accidents. Errors and omissions insurance protects against claims of negligence or mistakes in professional services, while extra expense insurance covers additional costs incurred to continue operations during a disruptive event. None of these directly relate to employee fraudulent activities, which is why fidelity coverage is the correct choice in this context.