What is the purpose of a Per Location Deductible?

A Per Location Deductible is designed to apply a separate deductible for each specific location that is impacted by a claim. This means that if a policyholder has multiple locations and a loss occurs at more than one of those locations, the deductible will be assessed individually for each affected site rather than aggregating the loss into one single deductible. Consequently, this structure allows for a more fair and systematic approach to claims, as it recognizes that losses may vary by location and thus necessitate distinct deductibles for each area involved.

In practical terms, if a policyholder experiences damage at several properties, this deductible structure means they will incur a deductible payment for each property rather than a single deductible for the overall loss. Such an approach is particularly relevant in business insurance where multiple sites are common, ensuring that coverage is appropriately utilized and costs are allocated fairly based on the actual impact of the losses.