Blanket Honesty Bond

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Blanket Honesty Bond

A bond or insurance policy covering a company in the event it loses money as the result of employee or unidentified theft or fraud. A blanket honesty bond provides a limit of coverage without regard for the number of employees involved. That is, it pays for losses up to a certain amount whether one or several employees were guilty of a crime. This differentiates it from a blanket position bond. As with similar bonds and policies, it does not cover situations in which the employee (without support or knowledge of management) falsifies trading to make the company appear healthier than it is. See also: Bonding, Operational risk.