Question

Which of the following best describes a Commercial Property floater?

a) Covers building, contents, and inventory.
b) Covers contents, newly acquired and in transit property.
c) Covers building, newly acquired and in transit property.
d) Covers none of the above.

Answer 1

A Commercial Property floater is an insurance policy that covers movable business assets, specifically contents, newly acquired items, and property in transit.

Step-by-step explanation:

The term Commercial Property floater refers to an insurance policy that covers movable property pertaining to a business. The correct answer to the question 'Which of the following best describes a Commercial Property floater?' is b) Covers contents, newly acquired and in transit property. This type of insurance is essential for businesses that have assets which are frequently moved or in transit such as tools, equipment, and some types of inventory. It is particularly relevant for businesses where goods and merchandise are frequently transported or moved from one location to another and new acquisitions are regularly added to the inventory.