Which option describes a blanket bond?

A blanket bond is designed to provide coverage for various positions within a company, protecting against losses incurred due to dishonest acts by employees in those positions. This type of bond is beneficial because it does not limit coverage to specific individuals but extends to all employees in designated roles or departments. This comprehensive protection can help organizations manage their exposure to risk associated with employee misconduct, such as theft or fraud.

While it is true that a blanket bond may inherently cover multiple transactions, it is fundamentally characterized by its inclusion of various positions rather than just transactions or a specific individual. This distinction makes it particularly useful in larger organizations where many employees have access to company funds and assets, allowing for a more thorough protective measure against potential internal fraud.