New Hampshire Property and Casualty Insurance Practice Exam

Fidelity bonds are a type of insurance that protects businesses from financial losses caused by fraudulent acts of their employees. The correct assertion about fidelity bonds is that they can indeed be tailored to cover specific employee roles. This customization means that businesses can choose the level of coverage and the specific positions that require bonding, thereby addressing the unique risks associated with different job functions. For instance, a company may opt to bond employees in roles that handle cash or have access to sensitive financial information, ensuring that they are protected against theft or dishonesty from those individuals.

In contrast, the other statements do not accurately reflect the nature of fidelity bonds. They can cover more than just physical property loss, including financial losses from theft or fraud. Additionally, fidelity bonds are relevant to businesses of all sizes, not just large corporations, as any business that has employees handling money or sensitive information may benefit from this coverage. Lastly, the premiums for fidelity bonds are influenced by various factors, including the hiring practices of the business and the level of risk posed by the roles being bonded, so they do not have a fixed premium across the board.