blanket bond

Blanket Bond

A bond or insurance policy covering a company in the event it loses money as the result of employee theft or fraud. It is important to note that blanket bonds generally only cover situations in which an employee commits fraud for personal gain; it does not cover situations in which the employee (without support or knowledge of management) falsifies trading so that it makes the company appear healthier that it is. The Federal Bonding Program, which is run through the Department of Labor, insures or guarantees the insurance of ex-offenders whose employment adds significant risk of theft or fraud. See also: Bonding, Operational risk.

blanket bond

References in periodicals archive ?
Rebecca has also advised on a variety of losses arising from alternative risk transfers, bankers blanket bond risks, the PA LMX spiral, workers compensation programs, agricultural risks and regulatory issues.
The IBA noted that while large firms have cover ranging from INR3.5bn to INR5bn, while most smaller players only have the Banker's Blanket Bond, which does not include cyber heists.
There is a special policy, known as Bankers' Blanket Bond, whose main objective is to identify fraud employees and covers situations.
ERISA provides that bonds are to be "in a form or of a type approved by the Secretary of Labor, including individual bonds or schedule or blanket forms of bonds which cover a group or class." (2) An individual, schedule, or blanket bond, or combination thereof, is acceptable under ERISA Section 412, provided that the form of the bond, in its particular clauses and application, is not inconsistent with meeting (1) the substantive requirements of ERISA for the persons and plan involved, and (2) the specific requirements of the regulations.
Get a good lawyer with experience in tech issues to review your blanket bond and computer crime rider.
Twenty years ago, the insurance industry could offer products such as the bankers blanket bond, the stockbrokers blanket bond, the mortgage bankers blanket bond and others.
In the RTC-Moskowitz case (footnote 23), the RTC claimed losses under a bankers blanket bond resulting from alleged dishonest acts attributed to bank officers and employees.
(MSI), was covered under a stockbrokers blanket bond issued by the Insurance Company of North America (INA).
Star Financial Bank(23) the Seventh Circuit considered Insuring Agreement D of a depository institutions blanket bond, which covered losses resulting directly from forgery of a negotiable instrument.
Arkansas statute, pursuant to which broker posted securities dealer blanket bond, did not impliedly permit direct right of action by third parties.
First Bank(22) the surety sought a declaration that the acts of the insured's former president were not covered under a bankers blanket bond. The federal district court granted the surety's motion for summary judgment, holding that the bank could not recover under Insuring Agreement A for a loss caused by personal failings and business neglect.
Paul Fire & Marine Insurance Co.(17) a stock brokerage firm sought indemnification under a stockholder blanket bond and stockholder partnership bonds for amounts it paid in settlement of certain underlying claims.