California Property & Casualty Broker-AgentProperty InsuranceMedium
A client operates a medical laboratory and has a Commercial Property Policy. They are concerned about potential damage to delicate scientific instruments during transit between their main lab and a satellite facility, or while being serviced off-site. Which type of coverage would best address this specific exposure?
- ACommercial Inland Marine Coverage
- BBusiness Income and Extra Expense Coverage Form
- CEquipment Breakdown Coverage
- DBuilding and Personal Property Coverage Form
Show answer & explanationAnswer & explanation
Correct answer: A. Commercial Inland Marine Coverage
Commercial Inland Marine coverage is designed to cover property that is typically in transit or otherwise away from the insured's premises, making it suitable for delicate instruments moved between locations or to service centers.
Why the other options are wrong
- B. Business Income and Extra Expense Coverage Form covers loss of income and extra expenses after a covered property loss, not the physical damage to property in transit.
- C. Equipment Breakdown Coverage covers mechanical or electrical breakdown of equipment, not physical damage during transportation.
- D. Building and Personal Property Coverage Form primarily covers property at a fixed location, not while in transit.
Commercial Inland Marine
A type of property insurance that covers property that is movable, in transit, or involved in transportation. It also covers instrumentalities of transportation and communication and certain types of property held by bailees.
- Covers property in transit or away from insured premises.
- Can cover valuable equipment, tools, and fine art.
- Often written on an 'all-risk' basis.
Memory trick: For things that move, Inland Marine is the groove.