What type of incident is typically covered by a staffing firm's fidelity bond policy?

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A staffing firm's fidelity bond policy is designed to protect against financial losses resulting from dishonest or fraudulent acts committed by employees, particularly in regard to theft or misappropriation. This type of bond provides coverage if an employee steals money or property from a client. Such incidents undermine the trust essential to staffing relationships and pose significant financial risks to the company and its clients.

Employee injuries on the job are typically covered under workers' compensation insurance, which is distinct from a fidelity bond. Accidental damage to client property would fall under general liability insurance, as it addresses physical damage rather than issues of theft or dishonesty. Workplace accidents involving safety violations are also separate, generally covered under specific workplace safety liability policies rather than a fidelity bond. Therefore, the correct answer highlights the bond's focus on protection against theft and dishonesty by employees.

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