Chapter 6 Specific and Blanket Coverages

• Library: The Commercial Property Insurance Policy Deskbook (ABA) (2018 Ed.)

CHAPTER 6 Specific and Blanket Coverages

Commercial property policies in the building and personal property coverage form can be written in one of two ways:

• on a specific basis; or
• on a blanket basis.

The approach used depends on the nature of the risk being insured and the needs of the insured.

Specific Coverage

When the building and personal property coverage form is written on a specific basis, it is written to cover one business risk for a definite amount of insurance. Generally, when an insured wants to protect several commercial items on a specific basis, the items are listed together in what is called a "scheduled policy." This is nothing more than a building and personal property coverage form written to cover specifically described properties.

An example of a specific policy incorporating a schedule could be as follows:

• $100,000 on a one-story frame-and-stucco warehouse
• $50,000 on the merchandise stored in the warehouse
• $150,000 total insurance

The policy wording is clear and unambiguous:

We will pay for direct physical loss of or damage to Covered Property at the premises described in the Declarations caused by or resulting from any Covered Cause of Loss.

This should not be confused with the scheduled articles floater, which is an inland marine coverage insuring against the risk of loss to various particularly described items of personal property.

The schedule works the same way but the coverages are much different. In a floater, each item is insured for a specific limit of...