Legal Definitions - blanket policy

A blanket policy is a single insurance policy designed to cover multiple items, locations, or types of risk under one set of terms and conditions. Instead of purchasing separate policies for each individual asset or exposure, a blanket policy provides broad coverage across various assets or situations, often up to a specified total limit.

Here are some examples to illustrate how a blanket policy works:

• Imagine a university that owns numerous buildings across its campus, including dormitories, academic halls, a library, and a sports complex. Instead of buying a separate property insurance policy for each individual building and its contents, the university might purchase a blanket policy. This single policy would cover all of its campus properties and their contents against perils like fire, vandalism, or natural disasters, up to a combined total value.

  This illustrates a blanket policy because one insurance agreement provides coverage for multiple distinct physical structures and their contents under a single umbrella.

• Consider a small business that operates a fleet of five delivery vans. Rather than obtaining an individual auto insurance policy for each van, the business owner could opt for a blanket policy. This single commercial auto policy would cover all five vehicles for liability, collision, and comprehensive damage, simplifying administration and often offering cost efficiencies compared to insuring each vehicle separately.

  This demonstrates a blanket policy covering multiple similar items (vehicles) within a single category under one comprehensive insurance plan.

• A family owns a collection of valuable antiques, including several pieces of furniture, a set of rare books, and various pieces of artwork. Instead of scheduling each item individually on their homeowner's policy or buying separate policies for each, they might choose a blanket policy for their valuables. This policy would cover the entire collection up to a specified aggregate limit, providing protection against theft, damage, or loss for all listed items without requiring individual valuation for every single piece.

  This example shows a blanket policy providing coverage for a diverse group of valuable items under a single policy, rather than requiring separate coverage for each distinct asset.