Commercial Blanket Bond

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 Appropriation

    Expenditures that are authorized on a blanket basis, without ...
  4. Blanket Bond

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

    A bond posted by an organization or professional insuring the ...
  6. Blanket Medical Expense

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

    Income Tax Implications of Group Life Insurance

    Income Tax Implications of Group Life Insurance
  2. Professionals

    COBRA and HIPAA Provisions

    CFP Study Guide - Group Medical Insurance - COBRA and HIPAA Provisions
  3. Professionals

    Fringe Benefits

    CFP Online Study Guide - Employee Benefits Planning - Fringe Benefits
  4. Insurance

    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.
  5. Professionals

    Other Employee Benefits

    Other Employee Benefits
  6. Professionals

    Split-Dollar Life Insurance

    Split-Dollar Life Insurance
  7. Personal Finance

    Life Insurance Plans to Help Your Small Business Retain Employees

    How to use and design cash value life insurance plans as an incentive to help attract and retain key employees.
  8. Professionals

    Employee Stock Options

    Employee Stock Options
  9. Professionals

    6 Benefits You're Required by Law to Offer Your Employees

    Learn about the benefits that a business must offer to employees, such as family and medical leave, as well as various forms of insurance coverage.
  10. Professionals

    Review Questions

    Review Questions
RELATED FAQS
  1. Can LLCs have employees?

    Discover how limited liability corporations (LLC) can have an unlimited number of employees and the legal steps required ... Read Answer >>
  2. What are some examples of common fringe benefits?

    Learn how offering fringe benefits can be a strategic recruitment and retention tool for employers and drastically increase ... Read Answer >>
  3. 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 >>
  4. 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 >>
  5. Does technology follow the law of diminishing marginal returns?

    Learn how workers in the technology industry are affected by the law of diminishing marginal returns, and note the ways that ... Read Answer >>
  6. Is an employee eligible for an SEP if the plan has already been set up for other ...

    It depends. The employee should meet not only the service requirements, but the age and compensation requirements as well. ... Read Answer >>
Hot Definitions
  1. Goodwill

    An account that can be found in the assets portion of a company's balance sheet. Goodwill can often arise when one company ...
  2. Return On Invested Capital - ROIC

    A calculation used to assess a company's efficiency at allocating the capital under its control to profitable investments. ...
  3. Law Of Demand

    A microeconomic law that states that, all other factors being equal, as the price of a good or service increases, consumer ...
  4. Cost Of Debt

    The effective rate that a company pays on its current debt. This can be measured in either before- or after-tax returns; ...
  5. Yield Curve

    A line that plots the interest rates, at a set point in time, of bonds having equal credit quality, but differing maturity ...
  6. Stop-Limit Order

    An order placed with a broker that combines the features of stop order with those of a limit order. A stop-limit order will ...
Trading Center