Expanding a business into multiple locations is a big accomplishment for any entrepreneur. While the journey is filled with new opportunities, this also increases your risk. When you have more than one commercial property to protect, your insurance needs differ from a standard policy. One option to consider is blanket coverage. Below is an introduction to these policies to help you decide if they suit your needs.
How Does It Work?
While traditional policies insure a specific business location and the contents on that property, blanket insurance will cover as many locations as you own and all your assets. This type of coverage groups the properties together under a single policy with a combined limit. However, it is typically limited to properties with similar operations, such as apartment rentals, restaurant chains, retail franchises, and warehouses. This means that if you own a combination of businesses with different needs, you may need more than one policy.
What Are the Benefits?
Having blanket coverage streamlines your insurance portfolio. If each property has a separate policy, it is difficult to keep track of the varying details. One policy is easier to review and will help simplify the claims process.
Also, since commercial properties often fluctuate in value, there’s a higher likelihood of a claim exceeding the coverage limits of a traditional policy. With blanket insurance, there’s less chance of paying out of pocket because the shared limit is available for any of the properties covered. Blanket coverage also offers flexibility if you need to move equipment from one business site to another. Since the contents of your buildings carry the same amount of coverage, you don't have to revise the policy to reflect the change in location.
What Are the Coverage Limits?
A blanket insurance policy will set one coverage limit for all the properties and assets you own. For example, if you have one building valued at $700,000 and another valued at $1 million dollars, your total coverage limit would be $1.7 million. Thus, if you experience a loss in the second building and need repairs totaling $1.2 million, your claim would still be completely covered. Under a traditional policy, you’d only be covered up to the $1 million limit, leaving you financially responsible for the remaining $200,000.
If you need help exploring your commercial coverage options, contact Goggans Insurance in Scottsboro, AL. These insurance professionals will assess your business’s unique risks and create a policy that offers maximum protection. Working as an independent agency for more than 30 years, they provide high-quality and affordable products from a network of reliable carriers. Call (256) 574-3440 to request a quote, and visit them online for more information about their services.