Georgia Property & Casualty Practice Exam

Which type of commercial inland marine coverage is recommended for Lambert Jewelers due to insufficient coverage for jewelry?

1. Jewelers Block

2. Installation Floater

3. EDP Floater

4. Commercial Articles Floater

The correct answer is: Jewelers Block

The Jewelers Block coverage is specifically designed to protect jewelers against various risks associated with their inventory, which may include theft, loss, or damage. This type of coverage is crucial for businesses like Lambert Jewelers, as it provides specialized protection that general property insurance often does not adequately cover. The Jewelers Block policy not only safeguards the physical jewelry and valuable items on premises but can also extend coverage to those in transit. This type of coverage is tailored to the unique needs of jewelers, making it the most suitable choice when standard policies offer insufficient protection for high-value items like jewelry. This targeted approach ensures that jewelers can secure their inventory adequately against potential losses that are more common in their industry, which includes the handling of expensive items. The other options, while valuable for specific scenarios, do not meet the particular requirements Lambert Jewelers has for insuring jewelry. An Installation Floater typically covers equipment and materials during installation, an EDP Floater pertains to electronic data processing equipment, and a Commercial Articles Floater is meant for specific types of property rather than the comprehensive coverage of jewelry. Therefore, Jewelers Block is the recommended option due to its alignment with the specialized exposure and risk associated with jewelry sales and storage.