What type of bond covers each employee on a policy for a specified amount?

The name schedule bond is designed to cover each specified employee listed on the policy for a predetermined amount. This type of bond provides individual coverage for each named employee, ensuring that if one of them engages in dishonest acts such as theft or fraud, the bond will provide a payout up to the specified amount listed for that employee.

This specificity allows employers to customize the protection based on the perceived risk associated with each individual employee. In contrast, other types of bonds, such as the position schedule bond, cover specific roles rather than individual employees, while commercial blanket bonds provide broader coverage for all employees under a single limit, lacking the specifics of individual amounts. Surety bonds involve a different concept where a surety company provides a guarantee that a principal will fulfill their obligations, which is not primarily focused on covering employee dishonesty.