Banker’s Blanket Bond

What Does Banker’s Blanket Bond Mean?

A banker’s blanket bond is a type of insurance that banks purchase to protect against a wide range of criminal activities, including employee dishonesty and robbery.

Banker’s blanket bonds are also referred to as banker’s blanket fidelity bonds.

Insuranceopedia Explains Banker’s Blanket Bond

Banks are particularly vulnerable to crime-related losses because they often store large amounts of wealth and valuable assets on their premises. While most banks take precautionary measures such as hiring security guards and installing vaults, dishonest employees and robbers can still sometimes manage to steal the secured assets. Banker’s blanket bonds provide banks with reimbursement for a certain amount of lost assets. Because losses from internal theft and outside crime can run well into the millions, banks often pair these bonds with broader commercial crime insurance policies that fill in gaps the bond itself does not cover.

This type of insurance is often required by the state for a bank to operate legally. Even with a banker’s blanket bond in place, banks still rely on strong internal controls, and there are practical steps any business can take to prevent employee theft and fraud before a claim is ever filed.