floating policy

Quick Reference

An insurance policy that has only one sum insured although it may cover many items. No division of the total is shown on the policy and the policyholder is often able to add or remove items from the cover without reference to the insurers, provided that the total sum insured is not exceeded. Cover for contractors' plant and machinery is often arranged on this basis, because it enables them to purchase specialist equipment for a particular contract, without having to contact the insurers on every occasion.

Subjects: Business and Management.

Reference entries