What Does Banker's Blanket Bond Mean?
A banker's blanket bond is a type of insurance that banks purchase to get coverage from a wide range of criminal activity including employee dishonesty and robbery.
Banker's blanket bonds are also known as banker's blanket fidelity bonds.
Insuranceopedia Explains Banker's Blanket Bond
Banks are at particular risk for crime-related losses because they often store huge amounts of wealth and valuable assets on their premises. Most banks take precautionary measures such as hiring security guards and installing vaults. However, dishonest employees and robbers are still sometimes able to steal the guarded assets. Banker's blanket bonds allow banks to get reimbursement for a certain amount of lost assets.
This type of insurance is often required by the state for a bank to operate legally.