Commercial Blanket Bond

A type of insurance that covers a business in case of theft by employees.

One key attribute of a commercial blanket bond (making it attractive compared to other similar products) is that it can cover actions by many employees, even if the employees involved in the fraud are not all identified. This represents the "blanket" part of the coverage.

The insurance is considered separate from the general insurance coverage that companies can typically buy. The theft provisions of traditional policies are often limited to outsiders breaking into the company. So...coverage like that provided by the commercial blanket bond creates additional security against things like embezzlement or fraud.