Legal Definitions - drummer floater policy

A drummer floater policy is a specialized type of insurance coverage designed to protect merchandise, samples, or equipment that is regularly transported by a traveling salesperson or business representative. The term "drummer" historically referred to a commercial traveler who "drummed up" business, and "floater" indicates that the coverage "floats" with the insured property, protecting it regardless of its location, whether in transit, in a hotel, or at a client's premises. This policy typically covers risks such as theft, loss, or damage to these valuable items while they are away from the primary business location.

• Example 1: The Traveling Art Dealer

  Imagine an art dealer who frequently travels to private showings and art fairs, carrying a collection of valuable paintings and sculptures. While transporting a particularly rare piece to a client's home, the vehicle is involved in a minor accident, and the artwork sustains damage. A drummer floater policy would cover the cost of repairing the damaged artwork, as it specifically insures these items while they are in transit and away from the dealer's gallery.

• Example 2: The High-Tech Sales Representative

  Consider a sales representative for a technology company who travels extensively to demonstrate cutting-edge prototypes of new electronic devices to potential corporate clients. One evening, after a demonstration, their briefcase containing a highly valuable and sensitive prototype laptop is stolen from their locked hotel room. A drummer floater policy would provide coverage for the loss of this expensive and crucial demonstration equipment, which is essential for the representative's sales activities and is constantly moved between locations.

• Example 3: The Jewelry Wholesaler's Agent

  A sales agent for a jewelry wholesaler travels across several states, carrying a secure case filled with diamond rings, watches, and other precious jewelry samples to show to retail jewelers. During a stop at a restaurant, the case is snatched from their car. A drummer floater policy would compensate the wholesaler for the significant value of the lost jewelry samples, as the policy is specifically designed to protect such valuable merchandise while it is being transported and displayed by a traveling agent.