A blanket bond is a type of insurance policy that protects an organization from financial losses resulting from dishonest or fraudulent acts committed by its employees. The coverage typically applies to all employees of the organization and provides indemnification for losses due to theft, embezzlement, forgery, or other similar acts. Blanket bonds are typically purchased by businesses, non-profit organizations, and government entities to mitigate the risk of employee fraud or other dishonest behavior. The policy limits for a blanket bond may vary depending on the size of the organization and its exposure to risk. Some larger organizations may also purchase a separate bond for executives or high-level employees who handle significant amounts of money or sensitive information.
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