Can an agency file a claim under the faithful performance of duty bond for a loss occasioned by the simple negligence of an employee?
Technically, yes, but there would be little reason to do so. Most tort liability claims are already covered under the state’s liability risk management plan, which is designed specifically for such losses. Also, the bond administrator, whether insured or self-insured, is entitled to recover from the employee anything it pays to the agency on the employee’s behalf.
Related Questions
- Can an agency file a claim under the faithful performance of duty bond for a loss occasioned by the simple negligence of an employee?
- What is the difference between a faithful performance of duty bond and a fidelity bond?
- What does a faithful performance of duty bond cover that a fidelity bond does not?
