Property and Casualty Insurance Practice Exam

Blanket insurance is a type of insurance that provides coverage for multiple items of property across one or more locations under a single limit. This is particularly beneficial for businesses or individuals who have various assets spread out, as it simplifies the insurance process and often allows for easier management of coverage limits. For example, if a business owns several pieces of equipment located at different sites, blanket insurance can cover all of those items under one policy rather than requiring separate policies for each item or location.

In contrast, specific insurance concentrates coverage on a particular item or set of items, which can restrict flexibility and often requires multiple policies or additional paperwork for each separate asset. Liability insurance, on the other hand, is designed to protect against claims arising from injuries or damages to third parties, rather than directly covering property. Property insurance usually refers to more general coverage for property loss and damage but may not encompass multiple locations or items under one umbrella like blanket insurance does.