What type of coverage form is specific to stock subject to a floor plan arrangement?

The floor plan coverage form is specifically designed to protect inventory that is financed through a floor plan arrangement, which is primarily used in the automobile industry and retail. This type of coverage allows dealerships to insure stock that is owned by them but financed through loans or credit lines. It ensures that if loss or damage occurs to this inventory, the dealership is compensated for the value of the inventory under coverage provisions tailored for such scenarios.

This form addresses the unique exposure and risk associated with floor plan financing, where the dealership may not own the inventory outright but is responsible for it. Thus, the floor plan coverage form provides tailored protection, which is crucial for businesses that rely heavily on this type of financing arrangement. Understanding this context is vital for adjusters and insurance professionals in determining proper coverage for clients who use floor plans to manage their stock.