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Definition of 'Banker's Blanket Bond'
A fidelity bond purchased from an insurance broker that protects a bank against losses from a variety of criminal acts carried out by employees. Some states require blanket bond coverage as a condition of operating a bank.
Also known as a blanket fidelity bond.
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Investopedia explains 'Banker's Blanket Bond'
A fidelity bond is insurance coverage against losses that occur from the dishonest acts of employees. This bond may be applied to individual employees or to job positions in the company. For example, a bank can insure a specific bank manager, or can choose to insure the position itself, so that any employee that assumes those job responsibilities is automatically covered. Some of the employee criminal acts covered by a blanket bond include robbery carried out by an employee and forgery.
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