What type of insurance typically covers an employee who steals money from a Homeowners Association's account?

Fidelity insurance is specifically designed to protect organizations from losses due to employee theft, fraud, or dishonesty. In the case of a Homeowners Association, if an employee were to steal money from the organization's account, fidelity insurance would provide coverage for the loss incurred. This type of insurance is essential for organizations that handle significant funds and need to safeguard against internal risks.

Liability insurance, while crucial, generally covers bodily injury or property damage claims made by third parties and does not extend to losses caused by employee misconduct. Errors and Omissions insurance pertains to professional mistakes or failures to perform professional duties, primarily covering lawsuits related to negligence, but it does not cover theft. Workers' compensation focuses on workplace injuries and does not cover instances of theft or dishonesty by employees. Therefore, fidelity insurance is the appropriate coverage for this scenario.