Which insurance policy typically covers equipment in transit?

An equipment floater policy specifically covers equipment while it is in transit, distinguishing it from other types of insurance that provide coverage for different situations. This type of policy is particularly important for contractors and businesses that frequently transport tools and machinery to various job sites, as it safeguards against potential loss or damage during transportation.

In contrast, a general liability policy mainly addresses third-party claims related to bodily injury or property damage that occur on a business's premises or because of its operations, but it does not cover equipment in transit. Workers' compensation policy is designed to protect employees in the event of on-the-job injuries, and it does not encompass equipment coverage. Property insurance typically covers physical assets located within a defined space, such as a business location, and does not extend to items being transported. Thus, the equipment floater policy is the appropriate choice for coverage of equipment in transit, reflecting its specific purpose in risk management for businesses handling movable machinery and tools.