What distinguishes a blanket position bond from a primary commercial blanket bond?

A blanket position bond and a primary commercial blanket bond both serve the purpose of protecting businesses against employee dishonesty, but they differ in coverage specifics. The correct choice highlights that the blanket position bond has a limit on coverage for each employee and includes a two-year discovery period. This means that claims must be reported within two years of the incident being discovered, which is a critical feature for managing risk and ensuring timely reporting.

This distinction is important for businesses as it directly impacts the financial protection they receive. The limitation on coverage per employee means that while all employees are covered under the bond, the insurer caps the amount that can be claimed for any single employee's fraudulent activity. This helps in controlling potential losses and ensures that a single incident does not lead to unlimited liability for the insurer.

The two-year discovery period forms a key component of the bond's terms, encouraging businesses to maintain vigilance and report any suspicious activities promptly. This timeframe allows businesses to conduct thorough investigations and ensures they are acting within the agreed terms of the bond.

Other options suggest features that do not accurately portray how blanket position bonds function. For example, a blanket position bond does not cover all employees without limit or solely apply to specific roles, nor is it inherently more expensive than other bond types.