In the event of employee theft, the employer will be reimbursed for the financial loss up to the bond amount.
Blanket position bonds
Blanket position bonds cover all employees the day the bond is issued. As the bond automatically includes new employees and ceases on employees who no longer are employed, it is not necessary to endorse deletions or additions.
There are 2 types of blanket position bonds:
- Commercial blanket bond - provides 1 aggregate limit of liability, regardless of the number of employees involved.
- Blanket position bond - provides a specified limit on each employee. The bond may be extended to provide excess of the specified limit on specified employees.
Named-scheduled fidelity bonds
Named-scheduled fidelity bonds provide coverage on employees named on the bond. The bond lists the name and position of each employee and the amount for which each is bonded.