Simple English definitions for legal terms
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A block policy is a type of insurance policy that covers groups of property against most perils. It is an all-risk policy that can cover property held in bailment or a business's merchandise.
For example, a company that stores goods for multiple clients may purchase a block policy to cover all the goods against damage or loss. This policy would provide coverage for most risks, such as fire, theft, or vandalism.
Other types of insurance policies include:
Each policy has specific terms and conditions that determine the coverage provided and the premiums charged. Insurance companies use a process called insurance rating to arrive at a policy premium for a particular risk.