Insuring your property is a no-brainer for a business but specific limits on separate policies can leave businesses in a difficult position. Getting the RIGHT insurance is just as important as having it in the first place.Consider blanketing your commercial property to get the maximum protection.
SEPARATE VS. BLANKET POLICIES
Traditional policies insure a particular building or piece of equipment, such as specialty restaurant equipment, under a unique agreement with a specific limit in coverage for each property. While this might be sufficient if a business only had a single piece of property, it doesn’t serve a business with multiple assets nearly as well as a blanket policy.
A blanket policy covers multiple pieces of property with a combined limit, grouping a collection of properties under the same “blanket,” a single policy with a much higher limit.
For example, if your business insured a commercial building and business personal property valued at $500,000 and $50,000 respectively, a traditional policy for 100% replacement would cover each up to the limits identified. In contrast, a blanket policy would cover EITHER or BOTH pieces of property damaged by a covered hazard up to the combined limit of $550,000. As the number properties increase, the more valuable the flexibility offered in this type of policy.
BENEFITS OF A BLANKET POLICY
1.It Simplifies Life. Insuring multiple buildings or pieces of equipment can be both costly and time consuming. Keeping track of the details of each unique policy as you annually review them can also be difficult. In contrast, having one policy allows ease of review and making a claim when necessary.
2.It Allows for Shifting Value. Commercial properties are constantly shifting in value. Shared spaces, such as in the case of condominiums or rental properties, are particularly susceptible to these shifts. Frequent value shifts make it more likely that policies will be out-of-date, a big problem if a claim that exceeds the individual limit must be made.
3.It Puts Coverage Where You Need It. You can’t see the future to know which properties you’ll need to make a claim for. Having blanketed policies means that your much higher limit can be used for a claim on any individual piece of property, making it for more likely that your coverage will be adequate.
Having insurance is great but having the RIGHT insurance that offers the most flexibility is even better! Not everyone has use for blanket insurance policies but businesses that maintain multiple properties can really benefit from this type of coverage.
Not sure if a blanket policy is right for your business? Contact our insurance specialists today to explore the possibilities that might be a good fit for you.