Blanket Position Bond

Blanket Position Bond

A bond or insurance policy covering a company in the event it loses money as the result of employee theft or fraud. Unlike a blanket fidelity bond, it provides a limit of coverage per employee rather than per event or per company. That is, it pays for losses up to a certain amount multiplied by the number of employees involved. 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.
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The multiple penalty bond, such as the blanket position bond, gives separate coverage on each person for a uniform amount, the net effect being the same as though a separate bond were issued on each person covered by the bond and all of such bonds being for a uniform amount.