Utah Contractor Practice Exam

____________ insurance will protect against movable machinery left at the location or while being transported.

1. Builders risk

2. Commercial General Liability

3. Equipment Floater

4. General

The correct answer is: Equipment Floater

The correct choice is C, Equipment Floater insurance. This type of insurance is specifically designed to cover movable equipment and machinery, whether they are at a job site or in transit. It provides protection against risks such as theft, damage, or loss, which are common concerns for contractors who frequently move equipment for various projects. Equipment Floater insurance can be essential for contractors because traditional property insurance policies may not cover equipment that is not permanently affixed to a location. In contrast, Builders Risk insurance generally pertains to structures under construction and does not cover tools or machinery, while Commercial General Liability focuses on injuries and damages to third parties. General insurance is a broad term that could encompass multiple types of coverage but does not specifically address the needs of movable machinery. This makes Equipment Floater the most suitable option for protecting movable machinery during construction activities.