Overview
A blanket fidelity bond covers every employee under a single bond rather than naming individuals. It protects the business against loss from employee theft, forgery, or embezzlement, and it extends automatically to new hires without separate scheduling. Financial institutions, brokerages, and businesses that handle cash or client funds use it to cover their whole workforce.
Because the bond responds to the company's own losses from dishonest employees, underwriting looks at headcount, internal controls, and the coverage limit. A blanket form is simpler to administer than a scheduled bond because there is no list to keep current.
This is fidelity (first-party) coverage that pays the employer for theft by its staff. It is separate from surety bonds, which guarantee performance to a third party, and from liability insurance.
Who needs this bond
Companies with employee turnover or large workforces where scheduling each employee individually would be impractical.
Typical amount and term
Bond amount sized to peak cash and property exposure in a single loss event. Premium scales with bond amount and class of business.
What this bond costs
Your premium is a small percentage of the bond amount, set by underwriting. The biggest drivers:
- The coverage limit you select
- The number of employees
- The industry and how much cash or client money is handled
- The strength of internal controls and any prior losses
| Scenario | Bond amount | Estimated premium |
|---|---|---|
| Small business, $50,000 limit | $50,000 | around $250 to $500 per year |
| Mid-size firm, $100,000 limit | $100,000 | around $500 to $1,000 per year |
| Higher limit with strong controls | $250,000 | rate per $1,000 of coverage declines at higher limits |
Figures are illustrative premium ranges, not quotes or statutory amounts. Your rate depends on the bond amount your obligee requires and your underwriting profile.
What you will need
- Employee count by class (cash handling, property access, executive)
- Loss runs from any prior coverage
- Owner credit authorization
How to apply
- Send employee class breakdown and desired limits
- Underwriting review in 1 to 3 business days
- Bond issued covering every employee in the named classes
How a surety bond differs from insurance
A blanket fidelity bond pays your business for theft by your own employees. A surety bond, by contrast, guarantees your performance to a third party, and liability insurance pays for accidents you cause. The blanket form is first-party crime coverage, not a guarantee to an outside obligee.
Frequently asked questions
What is the difference between a blanket and a scheduled bond?
A blanket bond covers all employees under one limit. A scheduled bond lists named individuals or positions. Blanket forms are simpler because there is no roster to maintain.
Does a blanket bond cover new hires?
Yes. New employees are covered automatically as they join, without separate scheduling, up to the bond limit.
What losses are covered?
Loss of money, securities, or property from employee theft, forgery, or embezzlement, subject to the bond's terms and limit.
How is the premium set?
Mainly by the coverage limit and employee count, adjusted for the industry, controls, and loss history.
More fidelity bonds
Reviewed by the Cornerstone Surety bond team. Last reviewed 2026-06-17.