Based on the business requirements, 3 types of policies exist:
Floater policy: Some distributors, transporters, C&F agents, importers, and exporters have their stocks stored at multiple locations in the country. This policy is particularly useful to cover all locations in one policy rather than having to buy many policies. One single aggregate sum insured can be opted for with a maximum limit assigned to each location.
Declaration policy: There are certain seasonal business that have high stock value only for one quarter or few months in the entire financial year. So rather than having to opt for high sum insured and paying more premium for the entire year, a declaration policy may be opted for. Stock declarations are taken from the client in this type of policy and premium charged as per actual value in declaration.
Floater Declaration policy: Businesses that have a peculiar situation where floater as well as declaration makes sense can combine both features in a single policy.