What insurance product can protect an entity against loss of property, money, or securities due to fraud?

Prepare for the ANZIIF Tier 1 Exam. Familiarize yourself with insurance basics using multiple choice questions, each with hints and explanations. Get ready to succeed!

Fidelity insurance is designed specifically to protect organizations from losses caused by fraudulent acts, such as employee theft or forgery. This type of insurance covers the financial impacts of these dishonest activities, which can include loss of property, money, or securities. By providing coverage against such risks, fidelity insurance is essential for businesses that want to safeguard their assets and prevent potential financial damage that could arise from fraud.

In contrast, electronic equipment insurance is focused on protecting physical equipment from risks like damage or loss due to accidents, while travel insurance typically covers losses related to travel disruptions. Business interruption insurance is aimed at covering lost income and operating expenses when a business cannot operate due to unexpected events, such as natural disasters or other disruptions. Each of these other products addresses different types of risks and does not specifically cover losses resulting from fraudulent activities, which emphasizes the unique and critical nature of fidelity insurance in protecting against such threats.

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