Who does a transportation floater policy protect?

A transportation floater policy provides coverage primarily for the transporter against various risks, including damage to freight or cargo during transit. This type of policy is designed to protect the interests of the transporter, ensuring that they are financially safeguarded against losses that might occur while goods are in their custody.

By encompassing potential freight damage penalties, the policy enables transporters to maintain their operational integrity and mitigate financial losses arising from accidents, theft, or other unforeseen events that may lead to the deterioration or total loss of the cargo they are responsible for.

In contrast, while other parties are involved in the transport process, such as the shipper or receiver, the specific coverage offered by a transportation floater policy focuses on the transporter to ensure they can effectively operate without bearing the full brunt of potential losses.