Blanket Insurance
Blanket Insurance is a policy providing cover for more than one type of property at the same place, or one type of property at more than one location. We are dealing with a single premium that covers two or more items under the same policy. Instead of taking out separate insurance policies for each item or risk, one policy contract is entered into to cover a list of properties or risks.
An example of blanket insurance will be where a business has a number of stores in different locations and the business takes out blanket insurance to cover the risk at all their branches.
Blanket insurance can also be used to cover the risk carried for more than one person. An example here will be where a business takes out Employee Dishonesty coverage that will cover any loss caused by the dishonesty of any employee.
Blanket policies have an inherent risk that the sum insured may not be an accurate representation of the total value of the risk. The insurance company will therefore be exposed to a much bigger risk than that which is covered by the actual premium paid. Worldwide the trend is for businesses to rely less on blanket insurance, which is very expensive, and to concentrate on managing risk strategically.
Blanket Insurance is a speciality field and will not be handled by all insurers. Blanket cover for cars is called Fleet Insurance.