Florida General Contractor Practice Exam

Which type of insurance is primarily concerned with protecting a contractor's equipment on the job site?

1. General liability insurance

2. Workers' compensation insurance

3. Inland marine insurance

4. Property insurance

The correct answer is: Inland marine insurance

Inland marine insurance is specifically designed to cover movable equipment and property that is in transit or used at various locations, making it particularly relevant to contractors. This type of insurance protects tools, machinery, and other equipment that contractors use on job sites or transport between locations. It addresses the unique risks associated with equipment that is not fixed to a location, thereby providing critical coverage for contractors who might face losses due to theft, damage, or other unforeseen incidents while their equipment is on the job site. General liability insurance primarily covers claims related to bodily injury and property damage resulting from the contractor's operations, but it does not specifically cover equipment. Workers’ compensation insurance deals with workplace injuries affecting employees and does not cover equipment. Property insurance may protect buildings and physical assets but doesn't focus on movable equipment in the same way inland marine insurance does. Thus, inland marine insurance is the most suitable choice for protecting a contractor's equipment.