What is the primary purpose of Fidelity Bonds?

The primary purpose of Fidelity Bonds is to safeguard an employer against employee dishonesty. These bonds are designed specifically to protect businesses from financial loss due to fraudulent activities committed by their employees, such as theft, embezzlement, or forgery. By having a Fidelity Bond, an employer can have a financial safety net if an employee is found to be dishonest, ensuring that they can recover some or all of the losses incurred due to such actions.

The other options do not align with the intent of Fidelity Bonds. Guaranteeing employee productivity pertains more to performance evaluations and workplace management rather than financial protection. Protecting against theft by outsiders typically involves other types of insurance, like property or liability insurance, rather than Fidelity Bonds. Lastly, providing health benefits for employees is related to employee benefits packages and does not pertain to the protection against employee dishonesty. Thus, C is the answer that accurately reflects the true purpose of Fidelity Bonds.