Florida 2-20 General Lines Agent (Property, Casualty, Commercial Lines and Florida Law)Florida Law and EthicsMedium
A Florida 2-20 General Lines Agent is discussing coverage options for a commercial client's business personal property. The client wants to ensure that property temporarily away from the premises, such as equipment at a job site or inventory in transit, is also covered. Which of the following coverage forms or endorsements would be most appropriate for this need?
- ABuilding and Personal Property Coverage Form (BPP)
- BBusiness Income with Extra Expense Coverage Form
- CBuilders Risk Coverage Form
- DCommercial Inland Marine Coverage
Show answer & explanationAnswer & explanation
Correct answer: D. Commercial Inland Marine Coverage
Commercial Inland Marine coverage is specifically designed to cover property that is mobile in nature, or that is temporarily away from the insured's premises, including property in transit or at various job sites.
Why the other options are wrong
- A. The BPP form primarily covers property at a fixed, described location, with limited off-premises extensions.
- B. This form covers loss of income and extra expenses after a covered loss, not physical damage to property.
- C. Builders Risk covers buildings under construction, not mobile business personal property.
Commercial Inland Marine
Commercial Inland Marine insurance provides broad coverage for property that is mobile in nature, or that is temporarily away from the insured's premises.
- Covers property in transit.
- Covers property at various, unspecified locations.
- Often used for contractors' equipment, fine art, or cargo.
Memory trick: Property Moves, Marine Covers