Definition and Meaning
A Name Schedule Bond (Criminal) is a type of fidelity bond designed to cover employers against losses resulting from dishonest acts, theft, or fraud committed by specific employees listed in the bond. It provides a safety net for businesses by ensuring they can recover financially from unethical or illegal activities of designated individuals.
Etymology
The term breaks down into three components:
- Name: Refers to specific individuals named in the bond.
- Schedule: A list or timetable defining these individuals.
- Bond: A formal insurance contract assuring compensation for certain types of loss.
Background
Faithfully mirroring concepts from traditional fidelity bonds, the Name Schedule Bond specifically protects against the potential misconduct of identified employees. This bond type evolved in response to the need for more customized risk management strategies within businesses, providing targeted security where employee dishonesty is a concern yet difficult to generalize across all employees.
Key Takeaways
- Specific Protection: The bond covers losses caused by dishonest actions (like theft) of explicitly listed individuals.
- Customization: Tailors coverage to critical or vulnerable positions within a business.
- Risk Mitigation: Acts as a financial safeguard against internal fraud, contributing to a safer business environment.
Differences and Similarities
Differences:
- Name Schedule Bond (Criminal): Targets specific named employees.
- Name Position Bond: Covers positions, regardless of who’s in them.
Similarities:
- Purpose: Both offer protection against employee dishonesty.
- Mechanism: Both provide financial recompense for loss due to fraud or theft by employees.
Synonyms
- Specific Employee Fidelity Bond
- Named Employee Bond
Antonyms
- Blanket Fidelity Bond
- General Liability Bond
Related Terms with Definitions
- Blanket Bond: A type of fidelity bond that covers all employees without listing their names.
- Fidelity Bond: A broader bond covering losses due to fraudulent acts by employees.
- Position Schedule Bond: Similar to a name schedule bond but applies to specific job positions rather than named individuals.
Frequently Asked Questions (FAQs)
What is the primary purpose of a Name Schedule Bond (Criminal)?
Its primary purpose is to offer financial protection against losses caused by dishonest actions of specifically named employees.
How does a Name Schedule Bond differ from a Blanket Bond?
A Name Schedule Bond lists specific employees covered by the bond, while a Blanket Bond applies to all employees without individually naming them.
Can a business choose which employees to cover under a Name Schedule Bond?
Yes, businesses can select and name specific employees within the bond agreement.
Quotations
“He that is of a merry heart hath a continual feast: and he that hath a Name Schedule Bond hath a continual peace.” – Adaptation from Proverbs 15:15
Related Government Regulations
Various jurisdictions have specific requirements regarding the issuance and regulation of fidelity bonds, including Name Schedule Bonds. It’s essential to consult governmental guidelines like the Federal Insurance Office regulations under the U.S. Department of the Treasury.
Suggested Literature
- “The Fundamentals of Risk Management” by Paul Hopkin.
- “Principles of Insurance Law” by Jeffrey W. Stempel.
Inspirational Thought
“In the world of business, where honesty meets scrutiny, a Name Schedule Bond is the shield that keeps integrity intact.”
Stay safe, trust but verify, and always keep the bond strong!
Elaine Whitfield October 5, 2023
