What is a Blanket Bond?
The blanket bond is a form of insurance coverage that provides protection for brokerages in the event of employee error or dishonesty, as well in the case of theft. Blanket bonds are also often carried as part of the broad insurance coverage for other types of financial institutions that are responsible for managing the financial assets of individuals and corporations. There are two common forms of the blanket bond. The commercial blanket bond provides protection for an employer that is far reaching in scope and in application. A commercial blanket bond provides a maximum amount of coverage in the event of any one loss, regardless of the number of employees involved in the circumstances that created the loss. With the commercial type of blanket bond, the position of the employee or employees within the firm is not a factor. Anyone from the janitor to the president of the firm may be involved and the loss will still be covered. The second example of the blanket bond is known as a positi