A commercial property floater is coverage for a business’s movable property that is not confined to a single insured location. It is commonly used for equipment, inventory, and other business personal property that travels, is stored temporarily, or is used at multiple job sites.
The exact scope depends on the floater form and any endorsements, including where the property can be, what causes of loss are covered, and how property is valued.
What it typically covers
Commonly floated property includes:
- tools and equipment used off premises
- inventory taken to trade shows or events
- portable electronics and specialty business property
- property in transit, subject to the form
Some floaters are written for a specific class of property (for example, an equipment floater). Others are broader but still exclude certain high-theft items unless scheduled.
How it differs from a commercial property policy
A commercial property policy often focuses on property at described premises. It may include limited extensions for property off premises, but those extensions can have tighter sublimits and narrower causes of loss.
A commercial property floater is designed for the opposite situation: property that routinely moves or is used away from a fixed location, often with higher limits and broader territory.
How it is written (scheduled vs blanket)
Floaters are commonly written:
- Scheduled: items are listed with values and sometimes descriptions or serial numbers.
- Blanket: one limit applies to a class of property, with reporting and recordkeeping requirements.
Scheduled approaches can reduce disputes about what was covered. Blanket approaches can be more practical when property turns over frequently.
Underwriting and claims considerations
Underwriters typically focus on how the property is exposed, including:
- where it is stored when not in use
- theft controls (locks, alarms, tracking, supervised storage)
- transit frequency and territory
- prior loss history and recordkeeping quality
Claims often turn on proof and valuation. The insured generally needs to show that the item existed, was covered property, was at a covered location when the loss occurred, and what its value was under the form (for example, replacement cost vs actual cash value).
Related Terms
- Floater
- Equipment Floater
- Commercial Property Policy
- Business and Personal Property Coverage Form
- Property Insurance
- Transit Policy