What does a position schedule bond do?

A position schedule bond is specifically designed to provide coverage for certain positions within an organization rather than covering all employees indiscriminately. The primary function of this type of bond is to identify which roles within the company are covered, detailing the specific positions that have been assessed and deemed to require bonding. This focus on specific roles allows for tailored risk management and ensures that only those individuals in positions of trust and responsibility are protected under the bond.

In contrast to general employee coverage, this means that only designated individuals linked to defined roles will be included in the bond's protection. This distinction helps organizations manage risks associated with specific positions that may handle sensitive information or financial transactions, ensuring that they are adequately insured against potential losses due to misconduct or failure to uphold fiduciary responsibilities.