What is the insurance coverage called for employees who handle financial records and cash?

The correct answer is bonding, which refers specifically to a type of insurance coverage designed to protect businesses from losses caused by the fraudulent or dishonest acts of their employees, particularly those who handle financial records or cash. This type of coverage is particularly important in roles where there is a risk of embezzlement or theft, providing security for the company's finances and instilling confidence in clients and partners.

While other options like liability coverage and fidelity insurance may seem related, they serve different purposes. Liability coverage typically protects against claims of injury or damage to other individuals or property, rather than employee dishonesty. Fidelity insurance, although closer in concept, generally refers to coverage that insures businesses against losses caused by employee theft and could be seen as overlapping with bonding, but bonding is typically a more specific form of this insurance focused on guaranteeing honest conduct. Financial security plans usually refer to broader financial strategies or savings plans rather than specific insurance against employee fraud, emphasizing the distinction between general financial planning and targeted insurance solutions.