Umbrella VS Blanket Insurance… Is There A Difference?

reflection of girl holding umbrella from puddle

An Umbrella, a term for excess liability, is a policy which increases the limits of your primary general liability policy. As an example, if you have a $1,000,000 general liability policy and purchase a $2,000,000 Umbrella policy, you have increased your total liability limits to $3,000,000. The umbrella policy will provide additional coverage for everything covered in the primary general liability policy (called following form of the primary). However, the umbrella policy will not offer any additional coverage for items not covered in the primary general liability policy.

A Blanket is a type of property insurance policy with a single limit which covers multiple buildings. All losses are covered up to the blanket limit within the policy year, but each loss reduces the policy limit for the remainder of the policy year. However, the blanket limit can be written on an occurrence basis, and then the limits are reinstated to the full policy limit after each loss.

In summary, your Umbrella (liability) is not a Blanket (property). If you think your Umbrella can protect your property, you might want to grab a blanket and hope for the best!

At Commercial Coverage Insurance Agency, We Work for YOU! Call us today to review your options and discuss your insurance strategy.

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