In Plain English
Quick Answer
One insurance policy that covers multiple projects or locations instead of separate policies for each.
Definition
Definition
A blanket insurance policy provides coverage for multiple locations, projects, or items of property under a single policy with one aggregate limit. In construction, blanket policies are used to cover tools, equipment, or property at various jobsites without requiring separate policies for each. This approach simplifies administration and ensures coverage follows the contractor's work wherever it is performed.
Context
Why It Matters in Bidding
A blanket policy lets a contractor cover tools and equipment across every active jobsite without scrambling for new certificates each time work moves, which keeps bids competitive by spreading insurance cost over a portfolio rather than per project. Estimators allocating insurance into overhead should know whether coverage is blanket or scheduled, because the aggregate limit can be exhausted by a single large loss.
Example
Example
A site contractor with crews on five jobs carries a blanket equipment policy, so when a skid steer is stolen overnight from a new project, coverage applies immediately without the estimator having added a separate policy line to that bid.
See Also
Related Terms
FAQ
Questions Contractors Ask
How is a blanket policy different from a scheduled policy in construction?
A scheduled policy lists each item or location with its own limit, while a blanket policy groups them under one shared aggregate limit. Blanket coverage simplifies administration and follows roving equipment automatically, but a single large claim can deplete the shared limit, leaving other assets underinsured until the policy resets.
Does a blanket policy cover equipment at any jobsite automatically?
Generally yes, within the policy's defined scope and territory, which is why contractors favor it for mobile tools and equipment. Coverage still depends on the policy language, so estimators and project managers should confirm whether leased equipment, rented units, and newly acquired sites fall under the blanket terms before assuming protection.
How does a blanket policy affect bid overhead allocation?
Because one premium covers many projects, estimators spread that cost across the company's expected volume rather than charging a full policy to each bid. This keeps individual proposals leaner. The trade-off is the shared aggregate limit, so firms with high-value equipment exposure may need higher limits, raising the overhead rate applied across all bids.
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