What is Blanket Insurance Coverage?

Blanket insurance coverage refers to a policy that provides a single amount of insurance that applies to multiple locations or multiple types of property under one overarching limit. This means that rather than having separate limits for each individual location or type of property, a defined total coverage amount is available to cover losses across all insured items. This approach can be beneficial for policyholders because it allows for greater flexibility in how the insurance coverage can be utilized, adapting to varying loss scenarios without the need to worry about individual limits for each location or property type.

In contrast, coverage for a single event would focus on specific incidents and would not encompass multiple properties or locations. A specific policy limit for one location restricts coverage to just that one site, failing to provide the broader coverage characteristics that blanket insurance does. Meanwhile, insurance without limits is impractical in most insurance contexts, as it implies unlimited coverage which is generally not feasible or available in standard policies. Thus, the broad reach and flexibility offered by blanket insurance coverage make it a suitable choice for many businesses or individuals with assets spread across different sites.