The Commercial Property Floater Dealer's policy primarily covers what aspect?

The dealer’s policy under a commercial property floater is designed specifically to provide coverage for merchandise that a business holds for sale. This is particularly relevant for dealers who may have valuable inventory either on their premises or in transit. The policy covers loss or damage to merchandise, ensuring that businesses can recover from potential risks such as fire, theft, or other destructive events.

This focus on inventory protection differentiates it from the other options you might consider. Premises liability pertains to coverage for bodily injury or property damage occurring on a business's physical location, which is not the primary concern of a dealer's policy. Theft of cash is generally covered under different types of crime insurance rather than a dealer's policy aimed at merchandise. Vehicle insurance pertains to coverage for company vehicles and is outside the scope of what a dealer’s policy addresses. Thus, the primary purpose of the dealer’s policy centers on safeguarding a business's merchandise, making the coverage for damage to merchandise on business premises the most relevant and correct option.