Florida 2-20 General Lines Agent (Property, Casualty, Commercial Lines and Florida Law)Commercial LinesEasy
A Florida construction company relies heavily on a specialized crane valued at $500,000 for its major projects. This crane is frequently moved between different job sites. They want coverage for physical damage to the crane itself, whether it's at a job site, in transit, or stored in their yard. Which type of policy is most appropriate for this need?
- ABusinessowners Policy (BOP)
- BCommercial Property Policy
- CCommercial General Liability Policy
- DContractors Equipment Floater
Show answer & explanationAnswer & explanation
Correct answer: D. Contractors Equipment Floater
A Contractors Equipment Floater, a type of Inland Marine policy, is specifically designed to cover mobile equipment and tools owned by contractors, providing coverage for physical damage whether the equipment is on a job site, in transit, or stored.
Why the other options are wrong
- A. A Businessowners Policy (BOP) is a package policy for small to medium businesses and generally does not provide specialized coverage for high-value, mobile contractor's equipment.
- B. A Commercial Property Policy typically covers property at a fixed location, not equipment frequently moved between job sites.
- C. A Commercial General Liability Policy covers third-party bodily injury and property damage, not physical damage to the insured's own equipment.
Contractors Equipment Floater
A type of Inland Marine insurance that covers mobile equipment and tools used by contractors, providing protection against physical damage or loss while on job sites, in transit, or in storage.
- Covers equipment that is constantly moving.
- Provides 'all-risk' coverage for covered perils.
- Essential for construction companies with valuable mobile assets.
Memory trick: When your 'Equipment' is a 'Floater', it's always on the move, so you need a 'Floater' policy to follow it!