Which type of policy covers multiple individuals exposed to similar risks, such as members of a sports team?

A blanket policy is designed to cover multiple individuals who are exposed to similar risks under a single contract. This type of insurance is particularly beneficial for groups of people involved in activities that pose shared risks, like members of a sports team. The coverage typically becomes effective for all members as soon as they are part of the group, making it efficient and cost-effective for organizations.

Unlike individual policies, which are specific to a single person and provide tailored coverage, a blanket policy encompasses a broader approach, covering numerous members under one agreement without needing individual underwriting. This aspect is significant in scenarios where swift coverage is essential, such as in sporting events where risks affect multiple participants simultaneously.

In contrast, joint policies are usually structured to cover two individuals, often in the context of life insurance for spouses or partners. Group policies, while similar to blanket policies in that they cover multiple individuals, often pertain to specific groups such as employees in a workplace and may have different stipulations regarding eligibility and enrollment. Individual policies specifically cater to one person, addressing their unique insurance needs without the shared coverage element present in blanket policies.