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 Appropriation

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

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

    Liability insurance that provides coverage for all contracts ...
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. Retirement

    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.
  5. Managing Wealth

    6 Insurance Policies That Protect the Wealthy

    Here are six types of insurance that the wealthy use to protect their assets.
  6. Insurance

    How Much Car Insurance Do I Need?

    Find out to determine how much car insurance you actually need with this overview of the different types of coverage available in your policy.
  7. Insurance

    Life Insurance as a Bonus Plan for Key Employees

    A Section 162 plan is a life insurance plan provided by an employer to key employees.
  8. Insights

    The Snuggie's Complicated Tax Status is Finally Resolved

    Is it a blanket? Or is it a garment? The U.S. Court of International Trade has weighed in.
  9. Investing

    Corporate Bond Basics: Learn to Invest

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

    The Basics Of Bonds

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