West Virginia Property and Casualty Licensing Practice Exam

Which of the following is NOT typically covered under an unendorsed blanket fidelity bond?

1. Theft by employees

2. Fraud by employees

3. Negligence of employees

4. Dishonesty of employees

The correct answer is: Negligence of employees

An unendorsed blanket fidelity bond is designed to protect businesses from losses due to employee dishonesty, which includes actions such as theft, fraud, and other dishonest acts committed by employees. These bonds cover various forms of wrongdoing, specifically related to misconduct that results in financial loss to the employer. Negligence, on the other hand, usually pertains to a failure to exercise reasonable care that may lead to injury or damage but doesn't involve the element of dishonesty or intentional wrongful behavior. Fidelity bonds do not extend their coverage to negligent acts because negligence is not considered an intentional dishonest act. Thus, while the bond can cover theft, fraud, and outright dishonesty, it does not cover losses resulting from the negligent actions of employees, making negligence the correct answer for what is typically not covered under an unendorsed blanket fidelity bond.