blanket policy

blanket policy
The name given to a contract of insurance because of the manner in which the subject matter, that is the insured property or the risk 'is described, typically illustrated by a policy covering a stock of merchandise, which, because of the changing character of the property insured from day to day as articles are sold and replaced in the course of business, can be described only in general terms describing the nature of the stock and its location. Another typical illustration is that of a policy covering a warehouse risk, which, of course, varies from day to day as new customers bring in their property and old customers remove their property from the warehouse. 29 Am J Rev ed Ins § 306. Blanket or float policies are sometimes issued to factors or to warehousemen, intended only to cover margins uninsured by other policies, or to cover nothing more than the limited interest which the factor or warehouseman may have in the property which he has in charge. Home Ins. Co. v Baltimore Warehouse Co. 93 US 527, 541, 23 L Ed 868, 869.

Ballentine's law dictionary. . 1998.

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Look at other dictionaries:

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  • policy — The general principles by which a government is guided in its management of public affairs, or the legislature in its measures. A general term used to describe all contracts of insurance. See policy of insurance. This term, as applied to a law,… …   Black's law dictionary

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