blanket bond

Why Blanket Bonds Are a Necessary Investment

Many businesses that deal with finances must understandably take great strides to protect their assets. Being entrusted with large amounts of money is arguably one of the most significant undertakings in the current economy. While many may picture protections being put in place against outside infiltrations, the reality is that many criminal acts can be committed by employees themselves. Luckily with a blanket bond, these businesses are more likely to recover from these dishonest acts.

Types of Criminal Acts

Considering employees are carefully screened and able to pass the interview process, it may be shocking to discover that these same individuals can also be capable of committing criminal offenses. However, this is a reality. For these finance-related businesses, such as commodity brokers, security firms, investors and stock brokers, specialized coverage can provide support and aid in the recovery process when employees unexpectedly commit acts such acts involving the following:

  • Unethical behavior
  • Stealing or mishandling information
  • Theft of cash or other assets
  • Lying
  • Trading losses

Because of the nature of these businesses, it is important to be realistic of possible exposures, even if the problem is from within. A blanket bond, if not already required by law, can help restore confidence knowing that these scenarios will be covered. Finding an agency that specializes in providing this type of coverage is a recommended first step.