Blanket Policy (Pauschalpolice)
A blanket policy establishes a single overall sum insured covering several insured objects or risk types, without dividing it among the individual items.
Concept
A blanket policy sets a single, undivided overall sum insured for several insured items or risk positions (e.g. multiple buildings, locations, or stock warehouses), rather than agreeing a separate sum for each individual item. In the event of a claim, the entire agreed sum is available to cover the loss at one or more of the included positions.
Advantages and Risks
A blanket policy offers administrative simplification, since individual valuation and adjustment of the sum insured is not required for each position, and allows flexible handling of value shifts between individual positions (e.g. fluctuating stock levels at different locations). A drawback can be that a large loss at one position reduces the remaining sum available for the other positions.
Relevance for Insurance Practice
A blanket policy is particularly suited to businesses with multiple locations or stock holdings of fluctuating value; when structuring the contract, it should be carefully assessed whether the blanket overall sum still provides sufficient protection in the event of an accumulation loss affecting several positions simultaneously.