2025 Florida 4-40 Customer Representative License Complete Practice Test

An annual transit policy is designed to cover multiple shipments of goods over a specified period, typically one year. This type of policy is ideal for businesses that regularly transport goods and want continuous coverage for their shipments without the need to secure a separate policy for each individual shipment.

By opting for an annual transit policy, a company can streamline its insurance process and ensure that all shipments within the policy period are protected against various risks, such as loss or damage during transportation. This coverage can often lead to cost savings and reduced administrative burdens, as companies do not have to purchase separate policies for each individual shipment they make throughout the year.

In contrast, other types of policies, such as a trip transit policy, are more suited for specific, individual shipments. An installation floater typically provides coverage for equipment or materials at a job site, while a limited liability policy often restricts the amount of compensation that can be claimed for losses. Therefore, for a company looking to cover all shipments over a year, the annual transit policy is the most appropriate choice.