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.


BREAKING DOWN '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.


RELATED TERMS
  1. Commercial Blanket Bond

    A type of liability coverage for employers who want to protect ...
  2. Fidelity Bond

    A form of business insurance that offers an employer protection ...
  3. Blanket Bond

    Insurance coverage carried by brokerages, investment bankers, ...
  4. Honesty Bond

    A bond posted by an organization or professional insuring the ...
  5. Blanket Appropriation

    Expenditures that are authorized on a blanket basis, without ...
  6. Blanket Medical Expense

    An insurance policy which provides coverage for all medical expenses ...
Related Articles
  1. Retirement

    Is Fidelity Right for Your Retirement?

    Fidelity is one of the leading brokerage firms in the U.S. The company has several retirement plan offerings and services to help clients meet their goals.
  2. Investing

    Corporate Bond Basics: Learn to Invest

    Understand the basics of corporate bonds to increase your chances of positive returns.
  3. Investing

    FAMRX, FASGX, FSANX: Introducing Fidelity Target Risk Funds

    Get a brief overview of Fidelity's seven target risk funds, with a description of each fund's asset allocation and expense ratio.
  4. Investing

    Fidelity Mutual Funds Overview

    Learn about the mutual funds offered through Fidelity Investments' huge product line, and how the Fidelity investment philosophy differs from its competitors.
  5. Investing

    How To Choose The Right Bond For You

    Bond investing is a stable and low-risk way to diversify a portfolio. However, knowing which types of bonds are right for you is not always easy.
  6. Investing

    An Introduction to Individual Bonds

    Individual bonds are better than bond funds and can be a key component to one’s investment strategy.
  7. Investing

    The Basics Of Bonds

    Bonds play an important part in your portfolio as you age; learning about them makes good financial sense.
  8. Investing

    Investing in Bonds: 5 Mistakes to Avoid in Today's Market

    Investors need to understand the five mistakes involving interest rate risk, credit risk, complex bonds, markups and inflation to avoid in the bond market.
  9. Investing

    FSANX,FBALX,FGBLX,FDYSX: Fidelity Balanced Allocation Funds

    Find out about the five balanced allocation mutual funds that Fidelity Investments offers for investors with moderate levels of risk tolerance.
RELATED FAQS
  1. Does Fidelity have mutual funds?

    Learn about Fidelity investment mutual fund offerings. In addition, discover what other products and services Fidelity has ... Read Answer >>
Hot Definitions
  1. Leverage Ratio

    Any ratio used to calculate the financial leverage of a company to get an idea of the company's methods of financing or to ...
  2. Two And Twenty

    A type of compensation structure that hedge fund managers typically employ in which part of compensation is performance based. ...
  3. Market Capitalization

    The total dollar market value of all of a company's outstanding shares. Market capitalization is calculated by multiplying ...
  4. Expense Ratio

    A measure of what it costs an investment company to operate a mutual fund. An expense ratio is determined through an annual ...
  5. Mezzanine Financing

    A hybrid of debt and equity financing that is typically used to finance the expansion of existing companies. Mezzanine financing ...
  6. Long Run

    A period of time in which all factors of production and costs are variable. In the long run, firms are able to adjust all ...
Trading Center