Which of the following statements applies to a Commercial Property Floater?

Which of the following statements applies to a Commercial Property Floater?

• A. No coverage for burglary, but insures property in the custody of salesmen.
• B. It is a Named Perils policy.
• C. Covers unspecified premises but not newly acquired.
• D. Covers stock, equipment and tenants improvements.

Answer: (D)

A Commercial Property Floater covers movable business property that isn’t tied to one location, extending protection to stock, equipment, and tenant improvements wherever they are—at multiple premises or in transit. That’s why the statement about stock, equipment and tenants improvements is the best fit: it captures the typical scope of this floater. In practice, these floaters are usually broad (often all-risk/open perils) rather than confined to named perils, and they commonly cover property at unspecified locations and can include newly acquired property for a limited period. The other options don’t align with how a Commercial Property Floater works.

A Commercial Property Floater covers movable business property that isn’t tied to one location, extending protection to stock, equipment, and tenant improvements wherever they are—at multiple premises or in transit. That’s why the statement about stock, equipment and tenants improvements is the best fit: it captures the typical scope of this floater.

In practice, these floaters are usually broad (often all-risk/open perils) rather than confined to named perils, and they commonly cover property at unspecified locations and can include newly acquired property for a limited period. The other options don’t align with how a Commercial Property Floater works.