Utah General Contractors - Business and Law Practice Exam

What type of insurance covers equipment at the premises, during transport, and at job sites?

1. General liability

2. Workers' compensation

3. Equipment floater

4. Builder's risk

The correct answer is: Equipment floater

The correct answer is that an equipment floater covers equipment at the premises, during transport, and at job sites. An equipment floater is a specific type of insurance designed to protect portable equipment and tools from various risks, including theft, damage, or loss, while they are in use or in transit. This type of coverage is essential for contractors and businesses that frequently move their equipment from one location to another, ensuring that they are not financially burdened by unexpected losses. General liability primarily addresses claims of bodily injury or property damage that may arise during the course of business operations but does not cover equipment specifically. Workers' compensation is focused on providing benefits to employees who are injured on the job and does not pertain to equipment coverage. Builder's risk insurance typically protects structures under construction against damage but does not provide coverage for equipment that is being used on the job site or while being transported. In summary, the equipment floater is specifically tailored to meet the needs of contractors by ensuring their valuable tools and equipment are covered in various situations.