Final answer:
In the case of loss of equipment covered under both a BOP policy and a floater policy, the floater policy would typically be the primary source of coverage, because it is specific insurance for that item. The BOP would only apply if the floater policy does not fully cover the loss, according to the terms of each policy.
Step-by-step explanation:
If an insured is covered under a Business Owners Policy (BOP) and also insures a piece of equipment separately under a floater policy, in the event of a loss, the coverage that will typically apply is the one specifically designated for that item, which is the floater policy. The BOP provides a combination of property and liability protection for businesses, but if an item is insured under a separate policy, that specialized policy takes precedence for losses concerning that item. The reason for this is that the floater policy is usually designed to cover specific property that may require broader protection, often including coverage for risks not typically covered by a BOP.
This practice is known as specific insurance over general insurance, where the more specific policy is primary in the event of a covered loss. It's important for the insured to notify all insurers involved if there's a loss, and the insurance companies will determine the order of coverage according to the policies' terms and coordination of benefits provisions.