Also known as: blanket policy meaning · blanket coverage · blanket limit
A policy that covers multiple locations, items, or interests under a single shared limit instead of assigning a separate limit to each.
A blanket policy applies one combined limit across several insured items, properties, or locations rather than scheduling a specific limit for each one. In commercial property, blanket coverage lets a business insure multiple buildings, equipment, or inventory under a single pool of coverage, so a large loss at one location can draw on the full limit instead of being capped at that item's scheduled value. The same idea shows up in contract-driven endorsements: a blanket additional insured or blanket waiver of subrogation automatically extends that status to every party you are required by written contract to cover, without listing each one. For a startup managing many vendor and client contracts, blanket endorsements save you from re-issuing paperwork every time you sign a new deal.
A blanket policy covers multiple items, locations, or interests under one shared limit rather than a separate limit for each. In property insurance, it lets a loss at one location draw on the full combined limit. In contract endorsements, a blanket form covers every party you are required to cover without listing each one.
Scheduled coverage assigns a specific limit to each listed item or location, so a claim is capped at that item's value. Blanket coverage pools one limit across all covered items, so a large loss can use the full amount. Blanket coverage is more flexible but requires an accurate total insured value to price correctly.
Definitions are educational and may be modified by your specific policy language, endorsements, and state rules. For regulatory guidance, refer to the California Department of Insurance or the NAIC.
Last updated: July 2026.