Inland Marine Floater
A type of inland marine policy that provides coverage for movable property that 'floats' between locations, not fixed to one premises.
What It Is
An Inland Marine Floater is a policy that provides coverage for property that moves between locations — it 'floats' with the property rather than being tied to a fixed premises. Floaters cover a wide range of movable property including contractor tools and equipment, musical instruments, camera equipment, fine arts, computer equipment, and sales samples.
Floaters are distinguished from standard commercial property coverage, which typically covers property at a scheduled location. When property regularly travels or is used at multiple locations, a floater provides continuous coverage regardless of where the property is located.
Common floater types include the Contractors Equipment Floater, Installation Floater, Transit Floater, Fine Arts Floater, and Electronic Data Processing (EDP) Floater. Each is designed for a specific type of movable property with coverage terms tailored to its unique risks.
Why It Matters for Brokers
Many businesses have valuable property that travels between locations — contractor tools, sales demonstration equipment, portable technology, and products in transit. Standard property policies may not cover these items adequately when they are away from the scheduled premises. Brokers who identify movable property exposures and recommend appropriate floaters protect their clients from a common coverage gap. Floaters are particularly important for contractors, photographers, musicians, and any service business that uses portable equipment.
Real-World Example
A professional photographer carries $85,000 in camera bodies, lenses, lighting equipment, and computers to shoots at various locations. Standard commercial property coverage only applies at the studio address. The broker places an inland marine floater that covers all equipment worldwide, including during transit, at client locations, and during international travel. When a camera bag is stolen at an airport, the floater covers the $22,000 loss.
Common Mistakes
- 1Assuming business personal property coverage on the commercial property policy covers equipment used at job sites or during travel.
- 2Not scheduling high-value individual items on the floater, which may result in per-item sublimits applying.
- 3Setting the floater coverage territory too narrowly when the insured uses equipment across a wide geographic area.
How brokerageaudit.com Handles This
Policy Checker identifies accounts with significant movable property exposure and verifies that inland marine floaters provide adequate coverage territory, valuation, and per-item limits.