Which type of insurance focuses on losses related to fraudulent activities by employees?

The correct answer is fidelity bond insurance because it specifically provides coverage against losses arising from fraudulent or dishonest acts by employees. This type of insurance is essential for businesses that handle sensitive information or funds, as it protects against theft, embezzlement, or other forms of employee dishonesty. Fidelity bonds are often used by companies to safeguard their assets and ensure financial security against internal risks.

In contrast, property insurance covers loss or damage to physical assets due to events like fire or theft but does not specifically address employee fraud. Health insurance is focused on medical expenses and does not relate to employee actions in the workplace. Liability insurance is designed to protect businesses from claims of negligence or harm to others, which is outside the realm of employee fraud. Thus, fidelity bond insurance is uniquely suited for mitigating risks associated with employee dishonesty, making it the correct choice for this question.