Valuing Business Income Exposures: A Case for Blanket Business Income Insurance

ADJUSTING TODAY

“With blanket coverage, the parent and all subsidiaries can be included together and their combined values insured without duplication.”

One of the great advantages of blanket business income insurance is the avoidance of the duplication of values when there is interdependency among separate locations. This is particularly true with a parent company that has subsidiaries. With specific coverage at each location, the total value generated at each location — including spill-over value at other dependent locations either “upstream” or “downstream” from the location—must be included at each location. With blanket coverage, the parent and all subsidiaries can be included together and their combined values insured without duplication. Acommon method used to project all interests on the policy is to insure “SES Corporation [parent] and all subsidiary or affiliated companies [and/or partnerships], as interests may appear.”

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Randy H. Goodman, SPPA

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Ronald A. Cuccaro, SPPA

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Sheila E. Salvatore

ADJUSTING TODAY is published as a public service by Adjusters International, Inc. It is provided for general information and is not intended to replace professional insurance, legal or financial advice for specific cases.

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