Florida 2-20 General Lines Agent (Property, Casualty, Commercial Lines and Florida Law)Commercial LinesEasy
A Florida-based logistics company specializes in transporting high-value, temperature-sensitive pharmaceuticals across the state. They own a fleet of specialized refrigerated trucks and often transport goods for multiple clients simultaneously. Which type of Inland Marine coverage would best protect the goods they are transporting on behalf of their clients?
- AMotor Truck Cargo Policy (Owner's Form)
- BMotor Truck Cargo Policy (Carrier's Form)
- CTrip Transit Policy
- DBailee's Customer Policy
Show answer & explanationAnswer & explanation
Correct answer: B. Motor Truck Cargo Policy (Carrier's Form)
The logistics company is acting as a common carrier, transporting goods for others. A Motor Truck Cargo Policy (Carrier's Form) is specifically designed to cover the legal liability of a common or contract carrier for loss or damage to cargo belonging to others.
Why the other options are wrong
- A. This form covers property owned by the insured while being transported in their own vehicles, not goods belonging to clients.
- C. A Trip Transit Policy covers a single shipment between specified points, which is not suitable for a company making multiple, ongoing shipments.
- D. A Bailee's Customer Policy covers property of customers while in the care, custody, or control of the bailee, typically for services like dry cleaning or repair, not transit by a carrier.
Motor Truck Cargo Policy (Carrier's Form)
An Inland Marine policy that covers the legal liability of a common or contract carrier for loss or damage to cargo belonging to others while in the carrier's care, custody, and control.
- Covers carrier's legal liability for cargo of others.
- Applicable to common or contract carriers.
- Protects against perils like fire, collision, theft.
Memory trick: Inland Marine: Think 'MOVING' things, not just 'STILL' things.