In a name schedule bond, how are individuals covered?

A name schedule bond specifically provides coverage for individuals who are explicitly named in the bond agreement. This means that only those listed are protected under the bond. The focus on named individuals ensures that the surety company has a clear understanding of who is considered a risk and who is covered.

This type of bond is often utilized when the principal (the party obtaining the bond) wants to limit the coverage to selected personnel, such as specific employees who have access to valuable assets or who conduct financially sensitive activities. By listing only certain individuals, the surety can accurately assess the risk based on the background and trustworthiness of those named.

In contrast, other options suggest broader coverage that isn't applicable to a name schedule bond. Coverage that includes all employees or solely specific positions or high-level executives creates ambiguity and potential risk misunderstanding, which does not align with the intentions and structure of a name schedule bond.