Which type of bond provides protection against losses incurred from fraudulent acts by specific individuals?

The answer is correct because a fidelity bond specifically provides protection against losses resulting from fraudulent acts committed by designated individuals, such as employees or officers of a company. This type of bond is often purchased by businesses to mitigate the risk of employee theft or dishonesty, thereby offering a safety net for the employer in the event of financial losses caused by these actions.

While adjuster bonds, performance bonds, and surety bonds serve different purposes, they do not focus directly on protecting against losses from the fraudulent activities of specific individuals. For example, adjuster bonds are primarily intended to license and regulate insurance adjusters, ensuring they operate ethically. Performance bonds guarantee that a contractor will fulfill their contractual obligations, protecting project owners from non-completion. Surety bonds, while connected to contractual agreements, do not specifically address fraud perpetrated by individuals.

Thus, the fidelity bond stands out as the appropriate choice for insuring against losses from fraud, underscoring its importance in safeguarding businesses against deceitful actions by trusted employees or associates.