Commercial Blanket Bond

Coverage of the employer for all employees on a blanket basis, with the maximum limit of coverage applied to any one loss without regard for the number of employees involved. Both commercial and position blanket bonds work the same way if only one employee causes the loss, or if the guilty employee(s) cannot be identified. For example, five identifiable employees as a team steal $50,000. A $10,000 blanket position bond would cover the loss in full. A$50,000 commercial blanket bond would be required to repay the insured business for the same loss.

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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.

Investopedia Says:

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.

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