What does an Installation Floater insurance policy cover?

An Installation Floater insurance policy is specifically designed to cover equipment and materials that are in the process of being installed. This includes machinery while it is being transported to the job site, during installation, and while it is being tested. The coverage is vital for contractors and businesses involved in projects that require significant installation work, as it protects against loss or damage that could occur at various stages of the installation process.

Coverage during installation is essential because this phase is often where the risk of damage is highest due to the complexity and the on-site environment. If the machinery is damaged while being set up, or if it sustains harm during transportation or testing, the Installation Floater policy would provide the necessary financial protection, ensuring that the business can continue operations without facing substantial unexpected losses.

In contrast, other options such as finished products at retail locations, items in storage at a warehouse, and damage to personal property of employees do not fall under the scope of an Installation Floater. These scenarios typically require different types of insurance coverage, such as commercial property insurance or general liability insurance, tailored to those specific risks.