Arizona Adjuster Practice Exam

What type of commercial inland marine policy is recommended for Ryan's appliance repair shop?

1. Commercial property policy

2. Bailees' customer floater

3. Equipment breakdown policy

4. General liability policy

The correct answer is: Bailees' customer floater

A bailee's customer floater is specifically designed to protect the personal property of customers while it is in the care of a business. In the context of Ryan's appliance repair shop, this type of policy is particularly relevant because it covers the appliances and other items that clients leave with him for repair. When customers bring their appliances to Ryan for servicing, he assumes a responsibility for their safekeeping; this means that he is acting as a bailee. If any of the customers' items are damaged or lost while in his possession, the bailee's customer floater would provide coverage for those losses, ensuring that both Ryan and his customers are protected. Other types of policies also serve important functions, but they do not provide the specific coverage needed for the situation presented. A commercial property policy focuses broadly on the business's owned property and may not adequately cover customer-owned items. An equipment breakdown policy would cover the failure of Ryan's tools or equipment, but not the items left by customers. Similarly, a general liability policy protects against claims of bodily injury or property damage that occur on the business premises but does not cover the personal property of customers. Thus, the bailee's customer floater is the most suitable option for Ryan.