Texas General Lines — Property and CasualtyPersonal LinesMedium
A client owns a small business that manufactures custom furniture. They frequently transport valuable finished pieces to client homes for delivery and installation. They are concerned about potential damage or theft of these pieces while in transit. Which type of policy would best address this specific exposure?
- AA Businessowners Policy (BOP).
- BA Commercial General Liability (CGL) policy.
- CA Commercial Inland Marine policy.
- DA Commercial Property policy.
Show answer & explanationAnswer & explanation
Correct answer: C. A Commercial Inland Marine policy.
Commercial Inland Marine policies are designed to cover property that is frequently moved or is at a different location from the insured's premises. This includes property in transit, which is exactly the exposure described.
Why the other options are wrong
- A. A BOP covers business property on premises and business liability, but its coverage for property in transit is usually limited.
- B. A CGL policy covers liability for bodily injury and property damage to others, but it does not cover the insured's own property.
- D. A Commercial Property policy primarily covers property at a fixed location, with very limited coverage for property in transit.
Commercial Inland Marine Policy
A type of commercial insurance that covers property that is frequently moved, is in transit, or is at a location other than the insured's primary premises.
- Often provides 'all-risk' coverage.
- Covers property in transit, at temporary locations, or owned by others but in the insured's care.
- Examples include Motor Truck Cargo, Builders Risk, Equipment Floaters.
Memory trick: For 'moving' business goods, 'Inland Marine' is your transit lifeline.