Block Insurance Policy
A block policy is a form of inland marine insurance that provides coverage on an all risks basis for property and goods that are held in bailment or on a business merchandise and while on the premises of others, against most perils. Commonly found in commercial insurance, a block policy is designed to protect businesses from property damage. To further protect goods shipped from business to customer, there is a need for inland marine insurance, also known as a block policy. Two of the most common kind of block policies are furriers’ block policies and jewelers’ block policies.
It covers loss to property of a merchant wholesaler or manufacturer including:
(1) property of others in an insured’s care, control, or custody;
(2) property under consignment; and
(3) property sold but not yet delivered.
This policy also comes under maritime insurance to protects the cargo owner against damage or loss of cargo in all modes of transport through which his/her cargo is carried i.e. covering all the risks of rail, road, and sea transport. This type of insurance provides protection for buildings, equipment, and inventory.