California Property & Casualty Broker-AgentProperty InsuranceMedium
A business owner has a Commercial Property Policy. They frequently move valuable equipment between their main office, a storage unit, and various client sites. Which of the following coverages would best protect this equipment while it is in transit or at temporary locations?
- ABuilders Risk Coverage Form
- BBuilding and Personal Property Coverage Form
- CBusiness Income and Extra Expense Coverage Form
- DCommercial Inland Marine Coverage Form
Show answer & explanationAnswer & explanation
Correct answer: D. Commercial Inland Marine Coverage Form
Commercial Inland Marine coverage is designed to protect property that is mobile in nature, frequently moved, or at various locations, including while in transit or at temporary client sites.
Why the other options are wrong
- A. Builders Risk covers property under construction at a specific site.
- B. Building and Personal Property covers property at a specific, declared location.
- C. Business Income and Extra Expense covers financial losses due to business interruption, not physical property.
Commercial Inland Marine
A type of commercial property insurance that covers property that is mobile in nature, frequently moved, or at various locations, including while in transit.
- Covers mobile property
- Often 'all-risk' or 'open perils'
- Can cover property in transit
Memory trick: Inland Marine: Moving Machines & Mobile Goods