Are you looking for the best commercial property insurance to protect your business? Consider blanket insurance policies. Blanket coverage has unique merits for companies that own multiple properties in one or more locations. Unlike individual coverage, blanket coverage protects different properties and risks with one umbrella policy. Specific coverage targets a specific property for a named risk.
What Are Blanket Insurance Policies?
Blanket insurance can be single insurance coverage for different properties at the same location. The insurance can also cover the same type of property at multiple locations or different types of properties at various locations. Blanket insurance policies cover the property and all possessions, including equipment, inventory, and furnishings.
The policies offer a broader set of protections than specific/individual policies. Blanket insurance policies are fairly common. A business owner’s policy (BOP) is a type of blanket insurance that combines commercial property insurance with general liability coverage. Homeowners insurance is another example. Blanket insurance can cover the building, contents, and business income.
Building blanket insurance policies cover the property, while blanket contents coverage covers possessions, like equipment and fixtures. Business income blanket insurance protects your income across multiple businesses in different locations. Here are the primary types of blanket insurance policies to consider for your commercial enterprise:
1. Separate Building and BPP Blanket Policies
You can get one blanket limit for your building and another blanket for your business personal property (BPP). Each limit applies to property at all locations. You can have a $3 million blanket for the buildings and a $2 million blanket for the BPP. The exact limits will be available in case any of your locations need coverage.
2. Separate Blanket Limit for Each Location
You can have one limit for your commercial business at a specific location and another for a different location. The insurance covers the building plus BPP. Location A may have a $3 million limit, and Location B $2 million. When a business needs coverage, its limits will apply and pay for the building and personal property therein.
3. Single Blanket for All Properties Everywhere
With this blanket coverage, you have one blanket insurance limit that applies to all properties at all locations. If you have two businesses with values of $3 million and $2 million, you can purchase a single blanket limit of $5 million. The limit is applied when either business needs coverage. The single blanket limit is a popular choice for most companies.
Common Examples of Blanket Insurance Policies
You need blanket insurance if you own a restaurant, café, deli, bar, tavern, catering business, nightclub, or food service company. Such businesses grow into chains with multiple locations with similar setups, equipment, and risks. A blanket insurance policy can protect your property and buildings across all locations. Below are common examples of blanket insurance policies available for commercial businesses:
a) Business Owner’s Policy
A business owner’s policy (BOP) is a blanket insurance policy that combines three types of insurance. BOPs cover general liability, commercial property, and business interruption insurance. General liability protects the business against bodily injuries and property damages.
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Commercial property insurance protects the equipment, furnishings, fixtures, and other property the business owns. Business interruption/income insurance protects against income loss due to events that prevent the company from operating. BOPs often leave out auto insurance, worker’s compensation, and professional liability insurance.
b) Commercial Umbrella Insurance
Commercial umbrella insurance isn’t a blanket insurance policy but shares many similar characteristics. The insurance covers liability claims rather than building and property damages. Typical commercial umbrella insurance will provide coverage for general liability insurance. The coverage also supplements employer’s liability insurance and commercial auto insurance.
Commercial umbrella insurance policies are supplemental and cover the excess when your primary policy is inadequate. You can purchase such policies if your business has high liability risks or needs more liability protection. The coverage can protect your business from expensive lawsuits and close the gap on insurance above a specific limit.
Why You Need Blanket Policies for Commercial Property Insurance
Blanket insurance policies can benefit businesses that own multiple buildings and properties in various locations. You can purchase a blanket limit to cover the different businesses. If you have two firms valued at $1.5 million each, you can have a blanket limit of $3 million. You’ll have the same limit if one business is affected.
Individual coverage policies can only offer up to the total value of the affected business. If Business A is worth $1.5 million, individual policies can’t cover beyond that amount. You’ll need commercial umbrella insurance to provide supplemental coverage. Blanket policies tend to offer the best commercial property insurance.