Blanket Rate

What Does Blanket Rate Mean?

A blanket rate is a single rate applied to multiple insurance products or offerings. For example, a property insurance company may provide a blanket rate to a chain of restaurants to cover all its properties within a specific area. For a fuller picture of the policies a chain like that usually carries alongside the property coverage, see our guide to what insurance a restaurant needs.

Offering a blanket rate simplifies the underwriting process, especially when multiple properties are involved.

Insuranceopedia Explains Blanket Rate

Blanket rates serve as an alternative to pricing each insurance product individually. Generating a price for each product can be time-consuming, making blanket rates a convenient option for all parties involved.

Whether or not an insurance company offers a blanket rate depends on its assessment of whether it is in its best interest to do so. Owners weighing this option usually want to know what they would otherwise pay per location, which is why it helps to look at how much small business insurance costs before agreeing to a blanket figure.