Miscellaneous floater insurance

Examples

• Vending machines and kiosks placed at other locations
• Musical instruments and sound equipment
• Survey and engineering instruments
• Mobile kitchen equipment and catering gear
• Rental inventory such as tents, tables and party equipment
• Signs, displays and point-of-purchase fixtures

How it works

Each item, or each group of similar items, is listed with a value. Coverage follows the property anywhere within the policy territory. Most forms are open-perils, subject to standard exclusions such as wear and tear, breakdown and unexplained disappearance.

Choosing the policy terms

Who buys a miscellaneous floater

Small businesses with valuable property that leaves the building: party and event rental companies, vending operators, caterers, musicians, surveyors, sign companies and market vendors. It also suits businesses whose main policy has a low limit for property away from premises. If the property is mostly contractors' tools and machinery, an equipment floater is usually a better fit. If it is computers, cameras or medical devices, a specialty form may offer better terms.

What underwriters ask

• A list of items with description, serial number where available, and value
• Where the property is kept overnight and where it is used
• How it is transported, and whether it is left in vehicles or trailers
• Whether any items are rented or lent to customers
• Security at your storage location
• Losses in the past three to five years

Gaps to ask about

Theft from an unattended vehicle is often covered only if the vehicle was locked and there are signs of forced entry. Mysterious disappearance, where an item is simply missing with no evidence of theft, is a common exclusion. Property rented to customers may be excluded unless the policy is written for rental inventory. Flood and earthquake may be excluded or sub-limited. Mechanical breakdown of equipment like vending machines is usually not covered.

How to schedule property on a floater

1. Walk through what you own that leaves your building and write down each item or group of items.
2. Record the description, make, model, serial number and purchase date where you have them.
3. Assign a value to each item, using recent receipts or current replacement prices.
4. Note where each item is stored, used and transported.
5. Decide what to schedule individually and what can go under a blanket limit.
6. Update the schedule when you buy, sell or retire items, not just at renewal.