What is a key difference between a named schedule bond and a scheduled position bond?

A key difference between a named schedule bond and a scheduled position bond lies in the coverage extended to employees. A named schedule bond specifically covers individually named employees, meaning that only those listed in the bond's terms are covered for potential losses. In contrast, a scheduled position bond provides coverage for all employees who occupy a specified position within an organization, regardless of the individual’s name. This distinction is essential as it helps organizations determine their risk management strategies and decide which type of bond aligns best with their operational needs.

This differentiation helps businesses identify and insure against potential risks associated with specific roles rather than limiting the coverage to certain individuals, allowing for more flexibility in coverage for organizations with various personnel occupying the same roles at different times.