If Employer X has a $10,000 blanket position bond and three employees steal a total of $10,000, how much can the employer recover?

In the scenario presented, Employer X has a $10,000 blanket position bond. A blanket position bond covers losses incurred from employee dishonesty, but the coverage limit is set for a specified amount, which in this case is $10,000.

When three employees collectively steal a total of $10,000, the bond will cover that loss up to the limit of the bond. However, it is crucial to understand how this type of bond functions. A blanket position bond typically covers multiple employees but does not multiply the coverage limits across individual claims. Instead, the employer can file a claim for the total amount stolen, which is exactly the bond limit they hold.

Therefore, the employer can recover up to the limit of the bond, which in this instance is $10,000, despite the total theft involving multiple employees. This is why the amount that can be recovered is $10,000, not $20,000, $30,000, or $40,000, as those figures would incorrectly imply that the bond’s coverage limit could be exceeded. Hence, the correct amount recoverable by Employer X is indeed $10,000.