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Does Your Business Have Multiple Locations? You’ll Want To Do This!

Does your business have multiple locations? I’m going to share with you one of my favorite ways to provide my clients with extra coverage.

When you have multiple locations, you have the option to “blanket” your Building and/or Contents Coverage across the locations. When you have 2 locations that are geographically separated, the chances that you’ll have a claim simultaneously at both locations is reduced. If you have a fire at one location, you’re probably not going to have a fire at your 2nd location at the same time. If you do, there’s probably some suspicious activity going on!

By blanketing your Building Coverage across your locations, it allows you to pull from the coverage limit of your 2nd location, if the coverage at your first location is not sufficient to rebuild to the same size and quality as it was prior to the fire.

If you had 2 locations with $350,000 of Building Coverage at location 1 and $500,000 of Building Coverage at location 2, by blanketing the Building Coverage it provides you with $850,000 of coverage at either location at the time of a claim.

The only requirement is that you need to insure each location for at least 90% of their Rebuilding Cost or you will trigger a co-insurance penalty. Here is a link to a video I did on explaining co-insurance penalty for Auto Dealers. The concept is applied the same to Building and Contents Coverage.

It does cost more to Blanket your coverage, but in my opinion, it is worth the extra cost to have the peace of mind of knowing that if disaster strikes, you’ll have sufficient coverage to rebuild your building to the same size and quality as it was prior to the claim.

I hope you found this tip helpful. If you’d like us to review your insurance and provide you with a no-obligation quote, give us a call 585-663-2004.