Registered Insurance Brokers of Ontario (RIBO) Practice Exam

What type of insurance policy would adequately cover theft of money from a Bingo hall by an employee?

1. General Liability Insurance

2. Burglary Insurance

3. A fidelity policy

4. Workers' Compensation Insurance

The correct answer is: A fidelity policy

A fidelity policy is designed specifically to protect businesses from losses due to dishonest acts committed by employees, such as theft or embezzlement. In the context of a Bingo hall, if an employee were to steal money, a fidelity policy would provide the necessary coverage to compensate the business for those losses. This type of policy focuses on employee-related fraud, providing an essential safeguard for businesses that handle cash or sensitive assets. It addresses issues of trust and the potential for internal theft, making it a suitable choice in this scenario. Other types of insurance, such as general liability insurance, focus more on third-party claims and do not cover employee actions directly. Burglary insurance typically covers theft that occurs as a result of forced entry, rather than employee theft, and workers' compensation insurance addresses employee injuries on the job rather than theft or dishonest acts. Therefore, among the options presented, a fidelity policy is the most fitting choice for addressing the risk of employee theft in this case.