To protect against crime loss exposures for his new brokerage company, what type of bond should James purchase?

The appropriate bond for James to purchase in order to protect against crime loss exposures for his brokerage company is the financial institution bond. This type of bond is specifically designed to provide coverage against losses resulting from various types of crime, such as employee dishonesty, fraud, and theft that can impact financial transactions and operations within a financial institution.

Financial institution bonds are tailored for companies that handle monetary assets, including brokerages and banks, as they often face heightened risks of internal and external criminal acts. By securing a financial institution bond, James would ensure that any losses due to criminal activities are mitigated, providing crucial financial protection for his business operations.

Other bond types listed may protect against different risks but do not specifically address crime loss exposures in a brokerage context. Performance bonds generally guarantee that contracted work will be completed satisfactorily, surety bonds involve a party's promise to pay a certain sum if a party fails to meet obligations, and contractor bonds are primarily intended for construction professionals to ensure compliance with regulations and contracts. Thus, these do not adequately cover the specific needs for protecting against crime in a brokerage setting.