Blanket Honesty Bond

AAA

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.

INVESTOPEDIA EXPLAINS '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. Bond

    A debt investment in which an investor loans money to an entity ...
  2. Insurance

    A contract (policy) in which an individual or entity receives ...
  3. Indemnity Insurance

    An insurance policy that aims to protect business owners and ...
  4. Comprehensive Glass Policy

    An insurance policy that covers glass that has been broken or ...
  5. Coastal Barrier Improvement (CBI) ...

    A federal law that makes federal disaster relief and federal ...
  6. Net Collections

    A term used in medical accounting to describe the amount of money ...
RELATED FAQS
  1. What happens if my insurance claim falls below the deductible level?

    Though the ins and outs of health insurance are often confusing, the concept of the insurance deductible is relatively straightforward. ... Read Full Answer >>
  2. How is the deductible I paid for my insurance claim treated for tax purposes?

    The deductible you pay on your health insurance policy may be tax-deductible if you meet certain conditions. However, whether ... Read Full Answer >>
  3. What are the main factors that impact share prices in the insurance sector?

    The main factors that impact share prices in the insurance sector are interest rates, earnings and actuarial risk. In the ... Read Full Answer >>
  4. Why do insurance policies have deductibles?

    Insurance policies have deductibles for behavioral and financial reasons. Moral Hazards Deductibles mitigate the behavioral ... Read Full Answer >>
  5. Which emerging markets are seeing the strongest growth in the insurance sector?

    The emerging market economies seeing the strongest growth for the insurance sector are primarily the main emerging market ... Read Full Answer >>
  6. What is the range of deductibles offered with various health insurance plans?

    A wide range of possible deductibles are available with health insurance plans, starting as low as a few hundred dollars ... Read Full Answer >>
Related Articles
  1. Retirement

    Build A Wall Around Your Assets

    Learn how to protect your money from lawsuits, creditors and other judgment proceedings.
  2. Retirement

    The Generation Gap

    Studies suggest that young workers may not be able to retire comfortably - or at all.
  3. Options & Futures

    Business Owners: Avoid Enron-esque Retirement Plans

    If your business administers a retirement plan, you should recognize what's at stake.
  4. Entrepreneurship

    Plans The Small-Business Owner Can Establish

    Don't hesitate to adopt a smart plan for you and your employees.
  5. Retirement

    Be Your Own Boss By Freelancing

    Learn the pros and cons before you bid adieu to sales meetings and power suits forever.
  6. Budgeting

    How to Defray Long-Term Care Expenses

    Here's a handful of options on what you can do to defray long-term care expenses.
  7. Investing Basics

    Top 3 Ways to Manage Lump-Sum Windfalls

    Have you just had a load of money drop into your lap? If so, several enviable options are available to you. Which one is the best choice?
  8. Insurance

    The Importance of Healthcare Risk Management

    Risk management is especially important in healthcare because human lives might be on the line. Here are some strategies to map out a plan.
  9. Insurance

    Medicaid and Nursing Homes: A Quick Guide to the Rules

    Medicaid can cover the costs of a long-term healthcare facility, if you qualify. But that's a big if.
  10. Professionals

    IRS Sets 2016 HSA Deduction Limits

    Contribution limits for HSA plans have increased slightly for 2016. Here's a breakdown of what they are and how they work.

You May Also Like

Hot Definitions
  1. Nuncupative Will

    A verbal will that must have two witnesses and can only deal with the distribution of personal property. A nuncupative will ...
  2. OsMA

    An abbreviation for Oscillator - Moving Average. OsMA is used in technical analysis to represent the variance between an ...
  3. Investopedia

    One of the best-known sources of financial information on the internet. Investopedia is a resource for investors, consumers ...
  4. Unfair Claims Practice

    The improper avoidance of a claim by an insurer or an attempt to reduce the size of the claim. By engaging in unfair claims ...
  5. Killer Bees

    An individual or firm that helps a company fend off a takeover attempt. A killer bee uses defensive strategies to keep an ...
  6. Sin Tax

    A state-sponsored tax that is added to products or services that are seen as vices, such as alcohol, tobacco and gambling. ...
Trading Center
×

You are using adblocking software

Want access to all of Investopedia? Add us to your “whitelist”
so you'll never miss a feature!