DEFINITION of 'Blanket Honesty Bond'

A kind of fidelity bond that covers an employer for all of the losses that are incurred through the dishonest acts of its employees. No matter how many employees are involved, the maximum amount of the coverage will be applied to any one loss. The employer is indemnified even if the the guilty employee(s) cannot be identified. Also known as commercial blanket bond.

BREAKING DOWN 'Blanket Honesty Bond'

Even though a blanket honesty bond and other kinds of fidelity bonds are called "bonds," as you can see they are really a form of insurance. The dishonest acts of employees covered include theft, embezzlement, forgery, disappearance and destruction and other types of wrongdoing. The process of buying a fidelity bond helps employers weed out staff who are likely to commit crimes, because commercially purchased fidelity bonds will not cover employees with histories of dishonest acts.

RELATED TERMS
  1. Commercial Blanket Bond

    A type of liability coverage for employers who want to protect ...
  2. Banker's Blanket Bond

    A fidelity bond purchased from an insurance broker that protects ...
  3. Fidelity Bond

    A form of business insurance that offers an employer protection ...
  4. Discovery Bond

    A type of fidelity bond used to protect a business from losses ...
  5. Blanket Bond

    Insurance coverage carried by brokerages, investment bankers, ...
  6. General Employer

    An employer who loans an employee to another business, and who ...
Related Articles
  1. Investing

    The 4 Best Fidelity Fixed Income Mutual Funds

    Learn about four mutual funds managed by Fidelity that invest in various fixed income securities, including bonds and asset-backed securities.
  2. Managing Wealth

    3 Dishonest Broker Tactics

    Learn how to spot three dishonest techniques that your broker might be using on you.
  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. Personal Finance

    What's Your Employee Value?

    Have you ever wondered how much you're worth to your boss? Here's a method for calculating that value.
  5. Investing

    Corporate Bond Basics: Learn to Invest

    Understand the basics of corporate bonds to increase your chances of positive returns.
  6. 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.
  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

    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.
  9. Investing

    Fidelity Equity Funds Overview

    Learn all about Fidelity's equity funds, such as investment-style, large-, mid- and small-cap funds, and international-, sector- and index-based funds.
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 >>
  2. What determines the price of a bond in the open market?

    Learn more about some of the factors that influence the valuation of bonds on the open market, and why bond prices and yields ... Read Answer >>
  3. Can LLCs have employees?

    Discover how limited liability corporations (LLC) can have an unlimited number of employees and the legal steps required ... Read Answer >>
Hot Definitions
  1. Treasury Bill - T-Bill

    A short-term debt obligation backed by the U.S. government with a maturity of less than one year. T-bills are sold in denominations ...
  2. Index

    A statistical measure of change in an economy or a securities market. In the case of financial markets, an index is a hypothetical ...
  3. Return on Market Value of Equity - ROME

    Return on market value of equity (ROME) is a comparative measure typically used by analysts to identify companies that generate ...
  4. Majority Shareholder

    A person or entity that owns more than 50% of a company's outstanding shares. The majority shareholder is often the founder ...
  5. Competitive Advantage

    An advantage that a firm has over its competitors, allowing it to generate greater sales or margins and/or retain more customers ...
  6. Mutual Fund

    An investment vehicle that is made up of a pool of funds collected from many investors for the purpose of investing in securities ...
Trading Center