DEFINITION of 'Commercial Blanket Bond'

A type of liability coverage for employers who want to protect themselves against losses resulting from dishonest employees. Commercial blanket bonds provide blanket coverage for all of an employer's employees. These bonds contain a maximum amount that they can cover for any single loss, regardless of the number of employees involved.

BREAKING DOWN 'Commercial Blanket Bond'

Commercial blanket bonds function in the same manner as position bonds in a couple of situations. Even if only one employee causes a loss, they will provide the same coverage. This also applies if the number of guilty employees cannot be determined.

RELATED TERMS
  1. Banker's Blanket Bond

    A fidelity bond purchased from an insurance broker that protects ...
  2. Blanket Honesty Bond

    A kind of fidelity bond that covers an employer for all of the ...
  3. Blanket Bond

    Insurance coverage carried by brokerages, investment bankers, ...
  4. Blanket Medical Expense

    An insurance policy which provides coverage for all medical expenses ...
  5. Blanket Contractual Liability Insurance

    Liability insurance that provides coverage for all contracts ...
  6. Blanket Lien

    A lien that gives the right to seize, in the event of nonpayment, ...
Related Articles
  1. Financial Advisor

    Group Term Life Insurance: What You Need to Know

    Is group term life insurance really a good deal? What you need to know about employer-sponsored group term life insurance coverage.
  2. 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.
  3. Insurance

    Take Advantage Of Employer-Sponsored LTC Insurance

    Find out why 98% of employees are missing out on some great benefits.
  4. Managing Wealth

    6 Insurance Policies That Protect the Wealthy

    Here are six types of insurance that the wealthy use to protect their assets.
  5. Managing Wealth

    Company Policies you Did Not Know Might Be Illegal

    While you need an employee handbook to maintain law and order, trying to enforce illegal policies can land you in hot water.
  6. Investing

    The Basics Of Bonds

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

    Is a SIMPLE IRA Right for Your Small Business?

    Here's how small businesses can benefit from offering a SIMPLE IRA to their employees.
  8. Personal Finance

    Top 10 Companies with the Best Parental Leave Benefits (NFLX, ADBE)

    Ikea just announced it will offer its 13,000 salaried and hourly employees in the U.S. up to four months of paid parental leave. Here are the other companies that offer the best benefits around. ...
  9. Financial Advisor

    How to Help Clients Navigate Open Enrollment

    With companies trying to pass on more costs to employees, making the right choices during open enrollment is more important than ever.
  10. Insurance

    Defined Contribution Health Plans: A Primer

    A look at defined contribution health plans and how they work for both employees and employers.
RELATED FAQS
  1. What does a merger or acquisition mean for the target company's employees?

    Learn about the likely impacts of a mergers & acquisition deal on the target company's employees, their benefits and adjusting ... 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 >>
Hot Definitions
  1. Agency Theory

    A supposition that explains the relationship between principals and agents in business. Agency theory is concerned with resolving ...
  2. 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 ...
  3. Index

    A statistical measure of change in an economy or a securities market. In the case of financial markets, an index is a hypothetical ...
  4. 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 ...
  5. Majority Shareholder

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

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