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Simple English definitions for legal terms
running policy
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A quick definition of running policy:
Running policy is a type of insurance policy that covers property that frequently changes in quantity or location, such as jewelry. It is also known as a floating policy or blanket policy. This policy offers limited coverage against loss and is different from other policies that offer broader protection with fewer limitations. Insurance companies use a process called insurance rating to determine the policy premium for a particular risk. Insurance Services Office is a nonprofit organization that provides analytical and decision-support services and tools to the insurance industry, including statistical, actuarial, underwriting, and claims data, and drafts of model insurance policy forms and coverage provisions.A more thorough explanation:
A running policy is a type of insurance policy that covers property that frequently changes in quantity or location, such as jewelry. It is also known as a floating policy or blanket policy. This type of policy is useful for businesses that have inventory that moves around frequently, such as a jewelry store or a construction company.
For example, a jewelry store may have a running policy that covers all of the jewelry in their possession, even if it is being transported to a different location or being shown to a customer. This policy provides coverage for the store's inventory, regardless of where it is located or how much of it there is.