Florida 2-20 General Lines Agent (Property, Casualty, Commercial Lines and Florida Law)Commercial LinesMedium
A Florida-based construction company frequently moves its heavy machinery, such as excavators and bulldozers, between various job sites throughout the state. They own this equipment outright. They are concerned about potential damage or theft of this equipment while it is in transit or temporarily stored at a new job site. Which type of Inland Marine coverage is designed to protect their owned equipment under these circumstances?
- AMotor Truck Cargo Policy (Carrier's Form)
- BContractors Equipment Floater
- CCommercial Property Policy
- DBuilder's Risk Policy
Show answer & explanationAnswer & explanation
Correct answer: B. Contractors Equipment Floater
A Contractors Equipment Floater is an Inland Marine policy specifically designed to cover mobile equipment, tools, and machinery owned by contractors, providing coverage both on and off the job site, including during transit and temporary storage.
Why the other options are wrong
- A. Motor Truck Cargo Policy (Carrier's Form) covers the liability of a carrier for goods belonging to others, not the owner's own equipment.
- C. A Commercial Property Policy typically covers property at a fixed location and offers limited or no coverage for mobile equipment in transit or at temporary job sites.
- D. A Builder's Risk Policy covers buildings or structures under construction, not mobile equipment.
Contractors Equipment Floater
An Inland Marine insurance policy that provides 'all-risk' coverage for a contractor's mobile equipment, tools, and machinery, whether at a job site, in transit, or temporarily stored.
- Covers owned mobile equipment.
- Broad 'all-risk' coverage.
- Covers equipment at various locations, including in transit.
Memory trick: Equipment Floats, Protection Follows