Blankets

Blankets are used to cover risks in multiple locations and provide adequate coverage in the event of a loss. Policies that cover Commercial Property (including Commercial Package), Business Owners, and Inland Marine can have blankets. A blanket can cover buildings (including contents), business income, or both.

A blanket increases the available coverage. For example, an insured party has two buildings in two different locations and $10,000,000 in coverage on each building. If the policy provides blanket coverage for the two buildings and one of the buildings is a total loss, the insured has up to $20,000,000 in coverage from the blanket.

Blankets are useful when each location includes different types of businesses with different risk profiles (mixed-use buildings). For example, a location might include apartments, a restaurant, and a dry cleaner. Because the risks for the different businesses are averaged, the price per dollar of coverage is less than it would be without a blanket.

In APD, you can model risk objects and coverages first and then add blanket types, or you can create the blanket types first. You can test by adding blanket coverage to a policy using the Submission wizard in PolicyCenter.