What Does Off-premise Clause Mean?
An off-premise clause is a clause in an insurance contract that stipulates that a policyholder will receive coverage for property that is stored in a separate location from the primary insured property. These clauses are often used in property insurance contracts for policyholders who cannot fit all of their items in one location.
Insuranceopedia Explains Off-premise Clause
Off-premise clauses can be very useful in certain situations. Imagine, for example, a restaurant owner who wants to insure all of the property in his restaurant. He could do so with a standard property insurance policy. However, if he has to keep some expensive equipment stored in a separate location, an off-premise clause could help him get coverage for these items too. A standard property policy would likely only cover the property at the location of the restaurant.