Commercial Blanket Bond Law and Legal Definition

Commercial blanket bond protects employers against losses resulting from dishonest employees. Commercial blanket bonds provide blanket coverage for all of an employer's employees. These bond works in the same manner as blanket position bonds. For example, five identifiable employees as a team steal $50,000. A $10,000 blanket position bond would cover the loss in full. A $50,000 commercial blanket bond would be required to repay the insured business for the same loss.