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Nevada · Casualty Insurance Sample Interactive Mind Map

Key Commercial Inland Marine Coverage Forms

A visual breakdown of Key Commercial Inland Marine Coverage Forms — one of the concepts you can count on seeing on the exam.

The TESTivity Interactive Mind Mapping Graphic we picked for the Nevada Casualty Insurance sample is Key Commercial Inland Marine Coverage Forms — and this is a concept you can count on seeing on your pre-licensing exam. Get the structure straight once and those questions turn into free points.

So explore it. Click through, see how the pieces relate, and let the layout do some of the remembering for you.

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Choose a Cluster to Study
Inland marine covers two things standard commercial property won't: property that moves, and specialized property the property form leaves out.
A floater is coverage that "floats" with the property instead of being tied to a fixed building. These seven forms break into three families — property on the move, records/data/receivables, and others' property in your care. The exam tests which form solves a scenario and, just as often, what each form does NOT cover.
📦 The 7 Key Commercial Inland Marine Forms
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Contractors Equipment Floater
Open-perils coverage on mobile equipment — dozers, excavators, cranes, generators, forklifts — that follows it to job sites, storage, and transport. Covers the equipment, NOT liability or completed work.
Property on the move
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Installation Floater
Covers property a contractor is installing at a customer's site — HVAC, elevators, machinery — until it is installed and accepted, then it becomes the customer's property.
Property on the move
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Transportation / Transit Coverage
Covers the insured's own goods in transit — by common carrier, private truck, etc. — warehouse to warehouse. Fills the in-transit gap commercial property excludes.
Property on the move
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Accounts Receivable
Pays amounts the insured can't collect because the records were destroyed by a covered loss, plus reconstruction expense and loan interest. NOT bad-debt coverage.
Records, data & receivables
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Valuable Papers and Records
Pays the cost to research, reconstruct, or replace documents, drawings, and records — not their intrinsic value. Broader and higher limits than the commercial property sub-limit.
Records, data & receivables
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Electronic Data Processing (EDP)
Open-perils coverage on hardware, software, and data — including power surge, electrical damage, mechanical breakdown, and magnetic erasure that standard property excludes.
Records, data & receivables
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Bailee's Customer Coverage
Protects a business holding customers' property for servicing — dry cleaners, repair shops, furriers, valet. Fills the gap left by the CGL's care, custody & control exclusion.
Others' property in your care
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The Big Idea Behind Inland Marine
Why these forms exist and how to slot any new one into a family
🚚 Property on the Move
Contractors equipment, installation work, and goods in transit. Standard property stops at the premises; these floaters follow the property.
📜 Records, Data & Receivables
Accounts receivable, valuable papers, and EDP. These insure the value of information and electronics that standard property barely touches.
🛅 Others' Property in Your Care
Bailee's customer coverage. The CGL's care, custody & control exclusion kills coverage for customer goods you hold — this form restores it.
Exam angleWhen a question describes a loss, ask: is the property moving or off-premises, is it information/electronics, or is it a customer's property in the insured's care? That points you to the family — then to the form. Inland marine is mostly open-perils and often written on an agreed-value or ACV basis.
Standard commercial property protects buildings and contents at a fixed location. The moment property moves or sits off-premises, you need a floater.
Three forms cover property in motion: equipment that travels to job sites, property being installed at a customer's site, and goods in transit between locations.
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Contractors Equipment Floater
Open-perils coverage on mobile machinery, anywhere it goes
What It Covers
A contractor's mobile equipment — bulldozers, excavators, cranes, generators, compressors, forklifts, and similar machinery. Coverage follows the equipment to any location: job sites, storage yards, and while in transit.
How It's Written
Open perils. Territory is worldwide or domestic as specified. Valuation on an agreed value or ACV basis, depending on the policy.
What It Does NOT Cover
  • Equipment liability — injuries or damage the equipment causes to others are a CGL matter, not the floater.
  • Completed work — defects in finished work fall under products / completed operations, not the floater.
Exam angleThe floater is first-party coverage on the machine itself. Separate the property loss (damaged equipment = floater) from the liability loss (someone hurt or third-party property damaged = CGL) and from completed work (products/completed ops). One scenario, three possible policies.
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Installation Floater
Bridges custody until the customer accepts the installed work
What It Covers
Property a contractor is installing or erecting at a customer's location during the installation process — HVAC systems, elevators, electrical systems, machinery.
When Coverage Ends
Once the property is installed and accepted, it becomes the customer's and is covered under the customer's commercial property policy. The floater bridges the gap from contractor custody to final acceptance.
Example: A contractor is installing a rooftop HVAC unit. A fire damages it before the owner signs off — the Installation Floater responds. If the same fire happened after the owner accepted the completed system, it would be the owner's commercial property claim.
Exam angleThe hand-off point is "installed AND accepted." Before acceptance = installation floater (contractor's coverage). After acceptance = the customer's property policy. Watch for questions that hinge on the timing of the loss.
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Transportation / Transit Coverage
The insured's own goods, in motion between locations
What It Covers
Property owned by the insured while in transit — shipped by common carrier, private truck, or other means. Commercial property policies typically exclude property in transit beyond the insured premises; this fills that gap, warehouse to warehouse.
How It's Written & Who Needs It
Available on an open-perils or named-perils basis. Important for wholesalers, distributors, and manufacturers moving significant inventory.
Exam angleTransit coverage is for the insured's OWN goods on the move. Remember the two clues: commercial property stops at the premises, and the protection runs "warehouse to warehouse."
These three forms insure value that isn't a building or a piece of equipment — the money you're owed, your documents, and your electronics.
Each one fills a place standard commercial property either excludes or sharply sub-limits. The biggest exam trap lives in this cluster: Accounts Receivable is not bad-debt insurance.
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Accounts Receivable is NOT Bad-Debt Coverage
Accounts Receivable coverage does not cover customers who simply refuse to pay or cannot pay. It covers only losses arising from the destruction of records that prevents collection. A bankrupt or deadbeat customer is a credit risk — never an AR claim.
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Accounts Receivable
Recovers what you can't collect when the records are destroyed
✅ What It Pays
The net amounts that cannot be collected because the records were destroyed or damaged by a covered cause of loss
Extra expense to reconstruct the records
Interest charges on bank loans required while collections are impaired
❌ What It Does NOT Cover
Customers who refuse to pay
Customers who simply cannot pay (insolvency, bankruptcy)
Any loss not arising from destroyed records
Exam angleThe trigger is a covered cause of loss destroying the records that document what is owed. If the scenario is a customer who won't or can't pay, the answer is "not covered" — that's bad debt, not AR coverage.
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Valuable Papers and Records
Pays to rebuild the documents — not their intrinsic value
What It Covers
The cost to research, reconstruct, or replace papers, documents, manuscripts, maps, drawings, and other records destroyed by a covered cause of loss. Examples: architectural drawings, legal contracts, business records, research data, historical documents.
The Key Distinction
It pays the cost of restoration, not the intrinsic value of the documents. Standard commercial property forms carry only a small sub-limit for valuable papers; the standalone inland marine form gives broader coverage and higher limits.
Exam angle"Cost to reconstruct, not intrinsic/market value" is the testable line. A priceless manuscript pays only what it costs to research and recreate the record — not an appraised collector value.
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Electronic Data Processing (EDP)
Restores the electrical and mechanical perils property excludes
What It Covers
Computer hardware, software, and data storage media on an open-perils basis — including perils that are excluded from standard commercial property forms.
Perils Standard Property Excludes — but EDP Covers
  • Electrical damage and power surges
  • Mechanical breakdown
  • Magnetic erasure of data
  • Temperature and humidity extremes
Exam angleStandard commercial property typically excludes electrical and mechanical causes of loss. When a scenario involves a power surge, short, or breakdown frying computer equipment or data, EDP is the form that fills the gap.
When you hold a customer's property to work on it, you're a bailee — and your CGL won't help if it's damaged.
The CGL's care, custody, and control exclusion eliminates coverage for property in your custody. Bailee's coverage is the fix. This cluster also pulls the whole topic together: where inland marine fills the gaps standard commercial property leaves open.
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The Care, Custody & Control Exclusion
A bailee is a business that holds customers' property for servicing. Because the CGL's care, custody, and control exclusion eliminates coverage for that property, bailee's coverage is essential. Without it, a fire or theft destroying customer goods leaves the business exposed with no insurer response.
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Bailee's Customer Coverage
Protects customers' property while in the bailee's custody
🏪 Who Needs It
  • Dry cleaners and laundries
  • Shoe repair shops
  • Electronics repair shops
  • Furniture refinishers
  • Fur storage facilities
  • Parking garages and valet services
Exam angleIf a business holds a customer's property to clean, store, repair, or park it, and that property is damaged, the CGL's care/custody/control exclusion blocks the claim. Bailee's coverage is the answer — and the form type (legal liability vs direct) decides whether negligence matters.
📋 Two Bailee Coverage Forms
⚖️ Legal Liability Form
🛡️ Direct (No-Fault) Form
When It Pays
Pays only when the bailee is legally liable for the damage to the customer's property
When It Pays
Pays regardless of whether the bailee is negligent — the customer's property is covered like first-party insurance
Negligence Required?
Yes — the customer must show the bailee was at fault
Negligence Required?
No — covered even for losses the bailee didn't cause
No-Fault Fire Example
A fire with no bailee negligence — this form pays nothing, because liability was never established.
No-Fault Fire Example
The same fire — this form pays the customer, because coverage doesn't depend on fault.
🧩 Where Inland Marine Fills Commercial Property Gaps
❌ Standard Commercial Property Gap
✅ Inland Marine Form That Fills It
Equipment off-premises / in motion
Property coverage is tied to the described premises
Contractors Equipment Floater
Open-perils coverage that follows the equipment anywhere
Goods in transit
Property in transit beyond the premises is excluded
Transportation / Transit Coverage
Covers the insured's goods warehouse to warehouse
Electrical / mechanical damage to computers
Power surge, breakdown, and erasure are excluded
EDP Coverage
Open-perils on hardware, software, and data, including those perils
Documents & receivables
Only a small sub-limit for valuable papers; no AR protection
Valuable Papers & Accounts Receivable
Higher limits to reconstruct records and recover uncollectible amounts
Customer property in your care
Blocked by the CGL's care, custody & control exclusion
Bailee's Customer Coverage
Insures customers' property while in the bailee's custody
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Top Exam Tips — Commercial Inland Marine Forms
1. Contractors Equipment Floater covers the equipment itself (open perils, follows it anywhere). It does NOT cover equipment liability (CGL) or completed work (products/completed ops).
2. Accounts Receivable is NOT bad debt. It pays only when destroyed records prevent collection — plus reconstruction expense and loan interest. A customer who won't/can't pay is never an AR claim.
3. Valuable Papers pays the cost to reconstruct, not the intrinsic value. Broader and higher limits than the commercial property sub-limit.
4. EDP fills the electrical/mechanical gap — power surge, mechanical breakdown, magnetic erasure, temperature/humidity — that standard property excludes.
5. Installation Floater covers until "installed and accepted." After acceptance the property shifts to the customer's commercial property policy.
6. Transit coverage = the insured's own goods, warehouse to warehouse, because commercial property excludes property in transit beyond the premises.
7. Bailee's coverage exists because of the CGL's care, custody & control exclusion. Legal liability form pays only with negligence; direct (no-fault) form pays regardless of fault.
Exam vocabulary
Key Terms to Know
Inland Marine
A property line that covers movable or specialized property — equipment in transit, goods being shipped, documents, electronics, and customers' property in your care — that standard commercial property forms exclude or sub-limit.
Floater
Coverage that "floats" with the property rather than being tied to a fixed location, so protection follows the equipment or goods wherever they go.
Open Perils
Coverage for all causes of loss except those specifically excluded — the basis most inland marine forms use, broader than named perils.
Agreed Value / ACV
Valuation methods. Agreed value sets the payable amount in advance; ACV (actual cash value) pays replacement cost less depreciation. Contractors equipment can be written either way.
Accounts Receivable
Covers the net amounts uncollectible because records were destroyed by a covered loss, plus reconstruction expense and loan interest. NOT bad-debt coverage.
Valuable Papers and Records
Pays the cost to research, reconstruct, or replace documents and records destroyed by a covered loss — the restoration cost, not the intrinsic value.
EDP Coverage
Open-perils coverage on computer hardware, software, and data — including power surge, mechanical breakdown, and magnetic erasure that standard property excludes.
Installation Floater
Covers property a contractor is installing at a customer's site until it is installed and accepted, when it shifts to the customer's property policy.
Bailee
A business that holds a customer's property for servicing — dry cleaner, repair shop, furrier, valet. Owes a duty of care for that property.
Care, Custody & Control Exclusion
A CGL exclusion that eliminates coverage for property in the insured's care, custody, or control — the gap bailee's customer coverage is designed to fill.

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