The Mount Vernon City Council passed a resolution authorizing an insurance policy aimed at safeguarding against employee dishonesty but shifting the cost to the city during a special meeting held on Monday..
According to the Dec. 16 Mount Vernon City Council agenda, the proposed insurance policy would cover officers, employees, and appointees of political subdivisions who are legally required to secure individual surety bonds for their duties before assuming office. This policy could potentially replace the need for these individuals to obtain separate surety bonds.
The special meeting agenda specifies that under the Ohio Revised Code, an "employee dishonesty and faithful performance of duty policy" refers to an insurance policy or coverage document issued by a joint self-insurance pool authorized by the Ohio Revised Code. This policy aims to protect against financial or property losses resulting from fraudulent or dishonest actions, as well as failures in performing legally prescribed duties typically covered by individual surety bonds.
Further details from the agenda indicate that the Ohio Revised Code mandates the city to adopt a resolution authorizing such a policy instead of requiring individual surety bonds from officers, employees, and appointees before they commence their terms or employment. Coverage under this policy must be documented prior to starting their duties.
If approved, the resolution will empower the safety-service director to procure the policy through the Public Entities Pool of Ohio. The coverage amount for each individual will meet or exceed the maximum bond amount otherwise mandated by law.
