Main/Knoxville:  (865) 588-7000
Nashville:  (615) 557-4296
(800) 588-7001



Most commercial properties use a form of insurance referred to as “specific coverage,” in which a specific property is insured for a named risk, such as fires, floods, thefts and more. However, specific coverage is also somewhat limited; oftentimes one policy will only cover one named risk at one location.

Blanket coverage, on the other hand, can offer protection for a number of different properties and risks. Under a blanket policy, you can group together coverage for multiple buildings and the property in them as long as the buildings are all similar in nature and function.

As a result, blanket coverage can make it easy and convenient to cover all the risks that threaten your properties. However, it’s important to know the characteristics of blanket coverage to see if it can adequately protect your business.

Blanket Insurance Basics

Because blanket insurance can offer coverage for multiple locations, it can often be useful for businesses such as apartment complexes and restaurant chains. However, properties covered under a blanket policy must be similar in nature. For example, a blanket policy would usually not a cover a business’s warehouse and storefront under the same policy.

Coverage under a blanket policy is generally triggered in the event of any loss associated with a named property. 

This can include fires, floods, thefts, personal injury liabilities and more. And, although it typically costs more than specific coverage, blanket coverage often provides broader protection than specific coverage by protecting against all of these liabilities simultaneously.

Additionally, blanket policies also offer protection for any equipment, inventory or furnishings located in or around covered structures. Unlike specific coverage, which only provides protection for items that are individually listed in the policy, blanket coverage provides broad coverage for your business’s property—even if it’s moved between two or more locations. This allows for more flexibility if you need to frequently move equipment to conduct business.

Coverage Limits

Under blanket coverage, all of your covered buildings and the property in them is covered until the total policy limit is hit.

For example, imagine if your business owns three warehouses that are each valued at $1.5 million. As a result, you would purchase a blanket policy with a limit of $4.5 million to protect all three properties. If one warehouse was destroyed in a fire and the cost to replace the building was actually $1.75 million—more than the originally estimated value of the property—your blanket policy would still provide full coverage (up to the $4.5 million limit). A specific coverage policy in the same scenario would only reimburse you up to the limit of the single property.

Finding the Right Policy for You

Although blanket coverage often provides broader protection than specific coverage, the policy that’s right for you can vary based on a variety of factors. 

Posted 11:10 AM  View Comments

Share |


No Comments


Post a Comment
Name
Required
E-Mail
Required (Not Displayed)
Comment
Required


All comments are moderated and stripped of HTML.
Submission Validation
Required
CAPTCHA
Change the CAPTCHA codeSpeak the CAPTCHA code
 
Enter the Validation Code from above.
NOTICE: This blog and website are made available by the publisher for educational and informational purposes only. It is not be used as a substitute for competent insurance, legal, or tax advice from a licensed professional in your state. By using this blog site you understand that there is no broker client relationship between you and the blog and website publisher.
Blog Archive


View Mobile Version

   
         Main Office:   9700 Westland Dr, Suite 102, Knoxville, TN 37922
Nashville Office:   c/o Industrious, 1033 Demonbreun St, Suite 300, Nashville, TN 37203
 
This website is intended to stimulate dialogue about your protection and does not alter or interpret your insurance policies. Always refer to your policy for details about your coverage.