What is an Equipment Floater Policy?

An Equipment Floater Policy is a specific type of inland marine insurance designed to cover physical loss or damage to equipment, which can include mobile tools and machinery. This policy is essential for contractors and businesses that frequently move equipment from site to site. Unlike standard commercial property insurance, which may only cover equipment at a designated location, an Equipment Floater provides broad coverage for equipment regardless of its location, as long as it is within the specified geographic area and under the terms of the policy.

This type of insurance is particularly valuable because it addresses the risk of loss or damage that can occur during transport or while in use on various job sites, protecting the policyholder’s financial investment in the equipment. It can cover theft, vandalism, and accidental damage, making it a comprehensive solution for businesses that rely on heavy machinery and tools.

The other options do not accurately represent the scope or purpose of an Equipment Floater Policy. For instance, liability coverage is associated with responsibilities rather than physical damage to equipment. Furthermore, a policy limited to machinery breakdowns would not encompass the broad array of risks covered by an Equipment Floater. Lastly, a policy that only covers transportation costs does not provide the essential protection for the equipment itself while it is not in transit.