What is a position schedule bond?

A position schedule bond is a type of fidelity bond that provides coverage for specific job positions within an organization, and it assigns selected coverage amounts for each position. This bond is designed to protect the employer against losses caused by dishonest acts of employees occupying those specified positions.

The unique aspect of a position schedule bond is that it allows businesses to tailor their bond coverage to the varying levels of risk associated with different roles. For example, positions that involve handling significant amounts of cash or sensitive information may warrant higher coverage limits, while other roles might require less. Thus, it ensures that the employer has appropriate coverage based on the level of trust and responsibility associated with each position.

This thorough approach mitigates the risk of employee misconduct, ensuring that businesses are better protected against potential losses. Understanding the nuances of position schedule bonds is essential for organizations that want to safeguard against the financial implications of employee dishonesty.