Which type of bond covers each employee on the policy for the amount listed on the schedule?

The correct answer is the Name Schedule Bond, which provides coverage for each named employee on the policy for the amount specified in the schedule. This type of bond is specifically designed to protect against losses due to dishonesty or fraud committed by individual employees listed in the schedule.

The unique feature of this bond is that it allows the policyholder to include or exclude employees as needed, giving them the flexibility to adjust coverage according to personnel changes. Each employee listed is bonded for the specified amount, which offers businesses assurance that they are covered against financial losses caused by those particular individuals.

In contrast, other types of bonds serve different purposes and do not provide the same type of employee-specific coverage. A Performance Bond, for instance, typically guarantees the completion of a contractual obligation, and a Contract Bond encompasses various types of bonds associated with fulfilling a contract. Similarly, a Miscellaneous Bond applies to various other situations but again does not focus specifically on employee coverage in this manner.