What type of coverage does a blanket bond provide?

A blanket bond provides coverage for losses due to employee dishonesty. It is designed to protect an organization against financial loss resulting from fraudulent activities committed by employees. Unlike a scheduled bond, which covers specified individuals, a blanket bond provides broader protection that encompasses all employees of a business, thereby guarding against various dishonest acts such as theft, embezzlement, or fraudulent misrepresentation.

This comprehensive approach is particularly beneficial for businesses that rely on the trustworthiness of their employees for daily operations, as it mitigates the risk associated with internal fraud without requiring a detailed list of each employee. By selecting this coverage, organizations can focus on their operations with a level of financial security against potential employee misconduct.