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.

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.