The Benefits of Blanket Limit Coverage

Having multiple locations can be a very exciting accomplishment for a business owner. Opening a second, third, or fourth (or more) location can rapidly increase your potential customer base or allow diversification among your products and services. While multiple locations means more insurance, a type of insurance policy called “blanket limit coverage” can provide more protection to each location.

What is Blanket Coverage?

Blanket limit coverage provides a total limit (amount of losses that can be paid) of insurance which can be applied to multiple locations or buildings. By contrast, a specific (also known as “scheduled”) limit of insurance, defines separate limits which are applied to each individual property. A landlord could cover two separate buildings under the same policy in this way.

How Blanket Coverage Limits Work

Think of an actual blanket. That blanket covers a measurable area. Now if you have two young children, you could cut the blanket in half giving one half to each. But it might be better to let each have access to the full blanket depending on who needed a nap first. While this is a little bit oversimplified, it is the basic principle of blanket limits. It is a powerful coverage for a landlord or business owner who have more than one location. Blanket limits only apply to buildings with the same owner and named insurance.

Breaking It Down Further

To help understand this, imagine a chain restaurant which has three buildings. Building A has a building limit of 2 million, building B has a building limit of 3 million, and Building C, the new, downtown location, has a building limit of 5 million. If catastrophe struck, and building B needed repairs totaling costs of 3.5 million, there would be only 3 million available. The owner would be on the hook for the remaining half a million dollars. With blanket coverage, the total limit would be ten million (each building’s limit combined into one) which could be applied to any of the three buildings.

Types of Business Blanket Coverage

There are several types of businesses which benefit from blanket coverages. Here are a few of the main ones:

Landlords: owners of commercial property can cover all individual properties with a single blanket limit.

Golf Course Owners: an owner of multiple golf courses would be the perfect fit for blanket coverages.

General Businesses: any business which has offices, facilities, or warehouses in multiple locations would likely benefit from blanket coverage.

While blanket coverage is more expensive than specific coverages, it can be of tremendous value to you. If you have any questions regarding blanket limits for your business, or any coverage for your country club, please contact H&K Insurance Agency. We’ll help get your establishment fully insured.

Brian began working at H&K Insurance Agency in 1992. He is a Certified Insurance Counselor (CIC), and an exceptionally qualified insurance professional helping clients protect their assets, and create future financial security in all areas of insurance. Brian is a sponsor of The New England Club Managers Association and specializes in helping golf clubs manage risk by creating insurance plans to protect clubs and their members. Brian oversees H&K’s regular donations to charitable organizations at both local and national levels, and runs seminars for local communities on how to protect their assets with insurance contracts.