What is a blanket policy?

A blanket policy provides insurance coverage for multiple types of property across various locations. This means that instead of having separate policies for each type of property or each location, a single blanket policy can cover everything under one umbrella. For example, a business might have a blanket policy that insures its equipment, inventory, and buildings, regardless of where they are situated.

This type of policy is advantageous for businesses that operate in multiple locations or have diverse assets, as it simplifies management and potentially offers cost savings compared to managing multiple policies. It provides comprehensive coverage and flexibility, ensuring that all insured properties are protected without the need for detailed tracking of individual policies for various assets or locations.

This contrasts with other options that define coverage in more limited terms, such as a policy that covers only a single type of property or one specific type of property at different locations. The blanket policy's broad coverage is essential for businesses with varied assets and locations, highlighting its importance in risk management.