What does "aggregate amount" refer to in the context of blanket position bonds?

In the context of blanket position bonds, "aggregate amount" refers to the maximum amount that can be recovered for all employees combined. This concept is crucial for understanding how blanket bonds operate, as they typically cover multiple positions within a company under a single bond.

When a claim is made under a blanket position bond, the total liability that the surety will cover for all employees is limited to this aggregate amount, regardless of the number of claims or the number of employees involved. This allows businesses to secure protection against losses without having to take out individual bonds for each employee, streamlining the bonding process while still providing a substantial safety net up to the specified aggregate limit.

This clarification helps illustrate how blanket position bonds operate as a collective safeguard for a range of employees rather than on a one-to-one basis, which would be the case with other types of bonding that focus on individual limits.