For a primary commercial blanket bond covering 200 employees, what is the maximum recovery for a loss due to unidentified employees?

Prepare for the Surety Bond Exam with engaging flashcards and multiple choice questions, complete with hints and explanations. Boost your confidence and get exam-ready!

In the context of a primary commercial blanket bond, which typically covers a specific number of employees for losses caused by dishonesty or fraud, there are set limitations on recovery amounts based on the terms of the bond. When losses are incurred due to unidentified employees, there is often a specified maximum recovery amount that the bond will pay for those losses.

In this case, the maximum recovery for a loss involving unidentified employees is specifically defined in the bond terms. In many cases, the maximum limit for losses connected with unidentified employees is set at $50,000. This amount reflects a common configuration in the bonding industry, balancing the insurer's risk with the needs of the bonded entity to ensure adequate protection for potential losses.

Understanding these limitations is crucial for businesses to effectively manage risk and ensure that they have the right level of coverage to protect against employee-related dishonesty.

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