Florida 2-20 General Lines Agent (Property, Casualty, Commercial Lines and Florida Law)Commercial LinesMedium
A Florida-based business operates several high-value drones for aerial photography and surveying. These drones are frequently transported to various job sites and are susceptible to damage during transit, operation, or storage. Which type of Inland Marine coverage would be most appropriate to protect these drones, regardless of their location?
- ACommercial Property Policy
- BContractors Equipment Floater
- CElectronic Data Processing (EDP) Equipment Coverage
- DEquipment Breakdown Coverage
Show answer & explanationAnswer & explanation
Correct answer: B. Contractors Equipment Floater
Drones, when used for business purposes like aerial photography or surveying, are considered contractors' equipment, especially given their mobility and susceptibility to damage during transport and use. A Contractors Equipment Floater is designed to cover such mobile equipment, whether it's on a job site, in transit, or stored.
Why the other options are wrong
- A. A Commercial Property Policy primarily covers property at a fixed location and would not adequately cover mobile drones.
- C. Electronic Data Processing (EDP) Equipment Coverage is for computer hardware and software, not for drones as physical equipment that performs a task.
- D. Equipment Breakdown Coverage protects against mechanical or electrical breakdown of covered equipment, but not physical damage from external perils or transit.
Contractors Equipment Floater
An Inland Marine policy designed to cover mobile equipment, tools, and machinery used by contractors or businesses, protecting them against physical damage or loss regardless of whether they are on a job site, in transit, or stored.
- Covers mobile equipment and tools.
- Provides coverage regardless of location (on-site, in transit, storage).
- Suitable for construction, landscaping, and similar businesses with mobile assets.
Memory trick: Inland Marine: 'FLOATING' coverage for your 'MOVING' gear.