Blanket insurance vs. standard insurance
Blanket insurance differs from standard individual insurance policies in its scope of coverage. Standard insurance policies focus on protecting a single item or asset. On the other hand, blanket insurance covers multiple items or properties at the same location under one policy.
For instance, if you’re running a resort with several cabins, you would typically need a separate policy for each cabin with standard insurance. But with blanket insurance, you can protect all the cabins under one policy.
Who needs blanket insurance?
As a business owner, if you don’t own multiple properties or have complex insurance needs, you may not need blanket insurance. Some of the most common businesses and industries that opt for blanket insurance include:
- Agricultural properties: Farmers can obtain a single blanket insurance policy to cover all the buildings on their farm.
- Car dealerships: Car dealers often opt for a blanket policy to cover their entire inventory of vehicles. This is more practical than having individual policies for each car on the lot.
- Businesses with multiple locations: Franchise businesses with numerous locations can benefit from the convenience of a blanket policy that covers various sites under one umbrella.
- Complex properties: Facilities like country clubs, which may have multiple buildings serving different functions, can simplify their insurance by using a blanket policy.
As you can see, blanket insurance is useful for covering multiple locations, properties and business personal property. That’s why you often see blanket insurance paired with commercial property insurance.
The advantages and disadvantages of blanket insurance
- Cost-efficient coverage
- Easier policy management
- Insufficient coverage for unique items
- Higher deductibles
- Less suitable for specific health conditions
- Less needed for self-insurance
Because it provides broader coverage, blanket insurance tends to cost more than separate policies. And while it provides broad coverage, it doesn’t cover every situation — for instance, floods or earthquakes.
Deciding on coverage limits for your blanket insurance policy
Coverage limits in an insurance policy represent the maximum amount the insurance company will pay for a claim. When setting these limits for a blanket insurance policy, you need to consider several factors.
Think about what you’re insuring and its value. This will help you decide how much coverage you need. Secondly, compare the cost of a blanket policy to that of individual policies for each item or property. A blanket policy can be more cost-effective if you have multiple items or properties at the same location.
Remember, higher deductibles can also lower your premiums, but it means you’ll pay more out-of-pocket if you make a claim.
Protecting your business with NEXT Insurance
NEXT makes it simple and fast to get the business insurance coverage you need. Our policies are designed to be affordable, customizable, and easy to manage.
You can start a quote, customize your options and access your certificate of insurance online immediately — in about 10 minutes.
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