What is the difference between a blanket position bond and a commercial blanket bond?
They work the same way in situations where one employee caused the loss, or where the guilty employee(s) could not be identified. A blanket position bond covers an employer against losses caused by employee dishonesty, per employee, to the full amount of the bond. Each guilty employee’s loss would be covered so long as it did not exceed the bond amount. A commercial blanket bond provides the same protection per incident, without regard to how many employees were involved. Consider, for example, a situation where five employees worked together to embezzle $50,000 from a company. A $10,000 blanket position bond would cover that entire loss because its formula is bond amount X number of employees involved, to the limit of the bond. A $10,000 commercial blanket bond would only cover $10,000 of that $50,000 loss.
