What is the limit of coverage in a blanket position bond?

In the context of a blanket position bond, the coverage is designed to protect against losses that may arise from the dishonest acts of employees. The correct interpretation is that there is a limit that applies separately to each involved employee. This means that the bond provides coverage flexibility, allowing for a designated amount of coverage for each employee, rather than a single limit that would cover all employees collectively.

The reasoning behind this structure is to ensure that if multiple employees are found to be involved in dishonest acts, the bond can cover the losses associated with each individual's actions up to the specified limit for each. This is particularly important for organizations that might have numerous employees handling funds or sensitive materials, as it helps to mitigate risks associated with employee dishonesty.

The other options do not accurately reflect how a blanket position bond operates. A single limit for the entire company would not provide sufficient protection for individual dishonest actions. Lack of limit specification could lead to ambiguity and potential gaps in coverage, which is not typically how such bonds are structured. Furthermore, providing coverage only for the most senior employees would exclude protections for lower-level employees who might also present a risk, thus undermining the comprehensive nature of the bond.