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What does a Securities Dealer Blanket Bond cover versus a Form 14 Broker-Dealer Fidelity Bond?

April 26, 2017Blanket Bond broker-dealer cover Dealer Fidelity form securities versus

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What does a Securities Dealer Blanket Bond cover versus a Form 14 Broker-Dealer Fidelity Bond?

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The Securities Dealer Blanket Bond provides the full limit of liability for each and every loss during the policy period as opposed to the Form 14 Broker-Dealer Fidelity Bond which is an aggregate limit and ceases to exist for the remainder of the policy period after the aggregate losses meet the bond limit of liability. The Securities Dealer Blanket Bond also provides defense cost for covered losses in addition to the limit of liability whereas the Form 14 Broker-Dealer Fidelity Bond provides defense cost within the limit of liability.