What type of insurance is specifically designed to protect against financial losses from breaches of trust?

The correct choice is surety insurance, as it is explicitly designed to protect against financial losses that arise from breaches of trust. Surety insurance serves as a contract that guarantees the performance or obligation of one party to another, making it particularly relevant in situations where financial responsibility and trustworthiness are essential.

In the context of financial agreements, surety bonds are often used to ensure that a contractor, for example, will complete a project as per the agreed terms. If the contractor fails to meet those obligations, the surety bond protects the entity relying on that trust – usually the project owner – by compensating them for their financial losses.

In contrast, the other types of insurance mentioned do not specifically cover breaches of trust. Auto insurance covers damages related to vehicle use, liability insurance protects against claims of negligence or harm to others, and health insurance deals with medical expenses. None of these options address the unique risks associated with breaches of trust, which is why surety insurance is the appropriate and correct choice in this context.