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The Benefits of Blanket Insurance

Our guest columnist is Mark Tagliaferro of Coffey & Co. in Hunt Valley, MD, a PBI partner since 2001. Mark counts PBI among his top 5 clients, and here he discusses the benefits of blanket insurance coverage on your commercial buildings.

Insuring your commercial buildings under a blanket basis has many benefits.

The primary benefit is that the buildings are all insured under one limit which is the sum of the individual building values.  This enables the blanket limit to be applied across the various locations as needed.  Blanket limits are normally assigned a 90% co-insurance limit which means that the blanket value must be equal to 90% of the total replacement cost of all buildings.  This can be a way to save money on insurance cost as it is extremely rare that all buildings will be damaged by the same event.  Insuring for 90% instead of 100% will lower costs while still keeping the blanket limit available for all buildings.

Another benefit of blanket building coverage is increased debris removal coverage.  Debris removal is insured for 25% of the building value in most policies.  Under blanket coverage, debris removal is 25% of the blanket limit, which substantially increases coverage.  Debris removal is often an unexpected expense during a total loss.

Blanket coverage on buildings can be done for little to no cost and can substantially improve the risk management program for any business with multiple locations.

Mark Tagliaferro is Senior Vice President, Commercial Lines for Coffey & Co. of Hunt Valley, MD, who recommend PBI as their preferred vendor for disaster restoration.  Contact him: