What is the primary purpose of Coverage Form O in relation to government agencies?

Coverage Form O is specifically designed to provide protection to government agencies against dishonest acts committed by public employees. This form is tailored to address the unique needs and risks faced by governmental entities, recognizing that they can be susceptible to fraud, embezzlement, and other forms of dishonesty. Such coverage is vital for maintaining the integrity of public operations and ensuring that taxpayer money is safeguarded against misuse.

In contrasting terms, the other options center on different types of risks. Protection against natural disasters refers to coverage that is typically provided under standard property or liability policies but does not specifically relate to employee misconduct. Coverage for damages caused by employees pertains more to general liability policies rather than a focus on dishonesty. Lastly, insurance against property loss usually refers to coverage for physical damage to properties rather than addressing dishonest acts by employees. Therefore, Coverage Form O stands out as it uniquely provides a safety net for public entities against the potential for dishonesty among their workforce.