What type of bond is specifically designed to cover individual employees named in a policy schedule?

The name schedule bond is specifically structured to cover individual employees who are listed in a policy schedule. This type of bond provides a tailored approach to ensuring that the financial liabilities associated with the activities of those specific employees are covered. In essence, it allows for the identification of particular individuals whose actions may pose financial risk, thereby providing protection to the employer against potential losses arising from those employees' misconduct or negligence.

This bond is particularly useful in scenarios where certain employees handle significant transactions or have access to sensitive information, as it helps to safeguard the organization while also fulfilling any regulatory or contractual obligations requiring fidelity coverage. By naming individual employees in the policy, it allows the bonding company to assess the specific risks associated with each individual, enhancing the coverage’s effectiveness.

Other types of bonds, such as general liability bonds or performance bonds, serve different purposes and do not focus on individual employees. General liability bonds address broader risks related to third-party claims for bodily injury or property damage, while performance bonds ensure the completion of a project according to contractual terms. Surety bonds, while encompassing various forms of contractual obligations and assurances, do not specifically target individual employee coverage in the same manner as name schedule bonds.